More and more people are adopting
digital payments to pay rent to their landlords. And while paying digitally,
credit card is the best option as it not only gives reward points but also free
credit period.
The nationwide lockdown has
required a lot of lifestyle changes for many of us and has shown us our ability
to adapt to change. It has initiated some very welcome steps in our day-to-day
lives and has changed traditional ways of doing things.
Let us look at the change that
has come to the real estate industry in a few days. The changes that industry giants envisioned will only happen in the distant future. For example, we have
come a long way from the time when a trip to a physical property was mandatory to
finalize an asset. Today there are many customers who have finalized a property
for rent through a video walkthrough!
The most sensational aspect of
the change is the payment of rent through credit card. But the current
situation required customers to move faster in the process. Rent is the biggest
monthly expense for most of us these days. And while paying rent through credit
cards helps us win a lot of reward points and cannot be stressed enough at this
point, Indian consumers have been slow to catch the trend. However, three
factors have catalyzed the adoption of this method - a buffer period offering
credit card payments, fear or inability to handle cash payments, and,
unfortunately, fear of layoffs.
Many state governments have urged
landlords not to take rent from tenants for the months of March-May 2020 as the
epidemic has affected the livelihoods of many people. But it cannot be
enforced, and it is up to individual landlords to pay a three-month rent or
postpone it or take out the middle ground.
There has been a sudden increase
in the number of people availing the service of paying rent through credit
cards. Credit cards offer a much needed buffer period or flexibility for
tenants to make payments. This ensures that rent is paid to the landlords on
time and the tenants do not have to face liquidity crisis. They get a free loan
period of about 45 days.
Most customers do not want to
conduct any cash transactions for fear of infection with notes. Furthermore,
the lockdown has ensured that no one can physically move out of their homes.
This is why more and more people are adopting digital payments to pay rent to
their landlords. And while paying digitally, credit card is the best option as
it not only gives reward points but also free credit period.
We are going through difficult
times and many companies are unsure whether they will have to let go to keep
employees away because the current situation has a huge business impact. Paying
rent through credit cards matters a lot in such a scenario, as the current
crisis is temporary, and it makes sense to have additional liquidity until more
clarity comes. Until things return to normal, and the state of the economy
improves, it is prudent to take advantage of liquidity that digitization has
opened up.
It is worth seeing the silver
layer with the clouds of darkness. The way the infection has occurred may not
be the best, the cause of the infection may be the worst ever but it has helped
the Indian people take a giant leap. The epidemic has set the pace more disciplined and a
more efficient way of closing transactions. Once the situation gets better and
we hope that it will be real soon, then we will enter a more efficient, a more
digitally equipped era and it will only be for our benefit.
