Xspaced, a fintech firm that provides landlords and tenants with flexible rent payment tools, announced Wednesday the launch of virtual bank accounts for tenants.
Virtual Banking for tenants enables Xspaced's FlexRent tool, which allows tenants to split their rent into smaller payments over a month independently from landlords registering on the platform.
"Since launching FlexRent last year, we've continuously heard from tenants that they would like to have more flexibility when it comes to paying rent and from landlords that they want to keep their current rent collection system," says Alex Pelin, co-founder at Xspaced. "With the launch of Xspaced Virtual Banking, Xspaced becomes the first of its kind, flexible rent payment product in the U.S. that doesn't require landlords to register. Tenants can save money towards their next rent payment via smaller payments over the month; landlords can keep collecting rent on their preferred payment portal -- it's a win/win for everyone!"
Rather than paying rent on their behalf, Xspaced helps tenants save money for their upcoming rent payment and differs from existing alternatives as it doesn't require tenants to go through credit checks; it can be used on any property where tenants pay rent online and don't require approval or registration from the landlord, and is less expensive compared to other flexible rent payment products.
According to Xspaced's pricing page, its FlexRent Plus option costs $3.99 a month enables users to split rent into two smaller payments, while its Premium option splits rent into three or four smaller payments. The Premium option costs $5.99 a month. Both options offer automated payment notifications and premium support via e-mail and chat.
Xspaced will work with Dwolla, a white-label service for integrating businesses with the automated clearing house network, enabling businesses to self-host a platform for sending, receiving and facilitating bank transfers. "Making expense management simpler for anyone on a variable income has been a challenge for a long time," said Dwolla CEO Brady Harris. "With Virtual Account Numbers, Xspaced is helping make rent easier by helping tenants align their rent payments with their income schedule. We're proud to power part of their solution."
Xspaced is available nationwide, the company said.