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Rental industry fintech company Piñata is releasing a no-fee debit payment solution called Piñata Pay with credit card company Visa, Inman has learned.
The new offering formally rolls out July 31 and is designed to function as a “responsible alternative to a credit card,” according to the company. A number of companies have been building reward programs for renters in the last couple of years as leasing has emerged as a long-term living solution in the wake of an exceedingly expensive and low-inventory housing market.
“At a time when credit card debt is at an all-time high of $1.115 trillion, Piñata presents a much-needed solution for those just beginning to build their credit or those looking to improve it.” the company stated. “Piñata Pay is revolutionary in its focus on building long-term financial health without luring people into debt.”
Users earn points for saving, tracked to the very dollar amount. It provides cash back, home appliance and furnishings prizes, and other saving-based incentives. Additionally, on-time payments are recorded and provided to all three credit scoring agencies, and Piñata also tracks payment histories to offer what it calls “a surge” in credit rating.
Boom is another company that provides credit scoring for renters, and Zillow, Entrata, RentSpree and Gravy, which was acquired by Clever, do it, too, each with their own approaches to assist renters with financial stability plans. Last year Boom launched an API to empower virtually any large-scale property management platform or rent payment gateway to directly embed its payment reporting module.
Historically, on-time rent payments have not been part of a person’s credit history, despite averaging close to 40 percent of a person’s outgoing expenses, according to a 2023 RentSpree report.
“It’s a way to access credit card-like rewards without taking on debt,” said Lily Liu, CEO of Piñata, in a statement. “Users will be building financial health while supercharging all the things renters already love about Piñata. This means the end of the endless cycle of credit card debt for millions of renters.”
Piñata has raised $20 million to date from leading Proptech investors led by Wilshire Lane Capital. It was founded in 2020.
