Rent Payments in Dubai Shifting to Digital
Dubai tenants and landlords now have the option to make and receive rent payments through direct debit, eliminating the need for outdated cheque payments.
The Direct Debit System, which is the UAE’s initial paperless direct debit marketplace, has joined forces with Keyper, a prominent technology-driven property management platform backed by venture capital, to introduce the first digital rental payments platform accessible to all tenants and landlords in Dubai and the wider UAE.
Benefits of Digital Rent Payments
This collaboration presents a much-awaited remedy to the conventional practice of post-dated cheque-based transactions, allowing property owners to receive rent payments digitally.
The Direct Debit System streamlines rent payments by automatically deducting them from tenants’ bank accounts based on pre-established conditions, akin to the process with post-dated cheques.
This technology eradicates the cumbersome process of managing and processing cheques, reducing the likelihood of errors. Moreover, it aligns with the strategic goals outlined by the UAE Central Bank and the government to encourage the adoption of modern payment methods.
Rent Now Pay Later Integration
With this launch, Keyper is integrating its rent facilitation services, Rent Now Pay Later, into the rental process. This service provides tenants with the flexibility to make monthly digital payments while ensuring landlords receive their payments upfront.
Advantages for Landlords and Tenants
Empowered by the Direct Debit System, the transition to digital payments promises significant improvements in the rental experience for both landlords and tenants, slashing the operational costs linked to rent payment processing.
This shift is particularly advantageous for non-resident property investors in Dubai, granting them a seamless channel to lease their properties and receive payments digitally from anywhere in the world.
Addressing the Slow Adoption of Digital Rent Payments
Despite the rapid progression of digital solutions and numerous initiatives aimed at promoting their adoption, the uptake of digital rent payments could be more active, with 95 percent of tenants still compelled to pay using cheques.
This new collaboration specifically caters to the requirements of individual and small-to-medium landlords, who now constitute the majority of property rentals in Dubai.
Statements from Key Stakeholders
Omar Abu Innab, Co-founder and CEO of Keyper, expressed excitement about the collaboration with Direct Debit System to introduce a groundbreaking digital rent payment solution to the UAE.
He emphasized the outdated nature of cheques and highlighted the evident need for a solution that could provide the functionality and security of cheques without the associated friction.
Ummair Butt, CEO of Direct Debit System, echoed Abu Innab’s sentiments, stating that the partnership signifies their dedication to innovation and their vision to simplify and enhance the rental process for landlords and tenants.
He emphasized that collaborating with Keyper enables them to extend their reach and contribute to the digital transformation of the rental market in the UAE, aligning it with other global cities.
The Future of Rent Payments in Dubai
Butt concluded by affirming their joint efforts to set a new standard for the entire rental market, making the process more efficient, secure, and user-friendly.
