If I understand this:
plan a) tenant pays rent via credit card, landlord receives full amount within 5 working days - no fees to either the tenant or landlord for processing this transaction. Most likely a promotional thing to get people to sign up.
plan b) full service management company - tenant pays rent via cc, landlord receives rental balance net of fee (4.5%) to cover for all property management service that the company provides.
plan c) full service management company with rent advance - tenant pays rent via cc (each month), landlord receives upfront full year rent net of fee (9.8%). Company manages the property for the landlord.
This is innovative in parts. I currently pay 8% to a management company in the US to manage a property (rent collection, arranging maintenance, tenant move in move out inspection, etc). For an additional 1.8% i'd be happy to collect all rent upfront assuming that its the management company then bears the risk of tenant defaulting.
Got reply from CS, note the "at this moment"Thank you for your enquiry, there are no transaction fees involved to pay your rent with a UnionPay Credit Card at this moment, please see the details athttp://unionpayintl.com/hk/promotion/rent. Also, there are no additional charges against with different receiving bank accounts now.
Please submit the tenancy agreement and start paying your rent
by completing the approval process.
Should you have any further queries,
please call RentSmart customer service hotline.
Not sure what the liability with China Union Pay is.
If they change the cost to customer, generally they would have to disclose the fee change up front. I'm not sure that they could keep their merchant facilities if they too many people complain.
Not sure what the merchant fee for UnionPay would be, but Rentsmart seem to be wearing that cost. Supposedly they are VC backed (as similar to the uber model, money is being poured into it to acquire customers and build out both sides of the market).
They may make a little bit of money by parking the money 'somewhere'. At most, they could have 5 days of interest (at whatever the at call rate is).
Maybe unionpay is giving them very low rates.
The only other revenue side is selling services to landlords. Maybe the SMS notification is spammy 'join us now' type messages. Maybe they start putting the landlord onto mailing lists, etc, but that may be problematic if they never consented. Not sure how well the PDPO 'rules' are enforced in HK.
Maybe you as a renter sign away your data privacy rights and they sell you as a product to other marketers...
The other Rental program (keychainpay) charges the customer/tenant the merchant fees (2.1% to 2.7%), which to the renter seems like a very bad deal.
OMG just go ask the merchants who can advise you