There’s a lot of buzz about digital wallets and service providers like Uber who make payments virtual and, to use the payments parlance, ‘invisible’. The thinking is that site based per transaction payments are outdated in that consumers want greater convenience, less hassle, and an improved experience that isn’t tainted by the ‘pay-up’ when service fees are due.  When it comes to rent, one of a handful of major debts paid in advance of consumption, adoption of ‘invisible’ payments has advanced for residents with good credit - people who have bank accounts to facilitate ACH transfers, and for communities and residents willing to pay credit card charges.  But what about residents who pay by money orders or late? These people have fewer payment options, automated, digital, visible or otherwise.

I would suggest that the Ubers of multifamily link payroll direct deposits to rent or other essential financial obligations.  Payments become ‘invisible’ when the payer (the resident in this scenario) is essentially removed from the payment process while they continue to ‘consume’ the rental product.  The value to the resident is clear in that their rent is taken care of as long as they continue working.  For communities, the value of payroll direct deposit programs is equal if not greater in that assured on-time delivery of rent significantly reduces much of the cost and burden of under-performing residents while also reducing the inconvenience of money order payments, or late payments, from a segment of the population that may be unbanked.