110 million renters across America will spend nearly $44 billion on rent payments this week as the first of the month approaches. More than 36 percent of all households in the country are now rentals, and as rent prices continue to skyrocket, more than 11 million people are spending 50% of their income on rent.
As rent bills continuing to go up, how are Americans paying for it? Fortunately, new options are arising for renters to retire their checkbooks and pay rent online. Since RadPad launched Pay with RadPad in October of 2014 we’ve helped renters pay more than $40 million in digital rent payments. As new digital payment options like Pay With RadPad are introduced, and people’s use of digital payment platforms like Apple Pay continue to grow, one of the last industries hanging onto physical checks is finally shifting towards more flexible and alternative payment methods.
This is vital as around 25% of the rental market is made up of under 30-year-old millennials who don’t use checks. First Data has found previously that more than 20 percent of millennials have never used a check! People are even forgetting how to write checks!
So as the apartment rental market shifts to paying rent online and on mobile, how are people paying? Let’s take a look.
iOS vs. Android
The topic, specifically the extremely loyal user bases associated with each, has been compared at great length over the years by analysts, marketers and developers looking to extrapolate data on each segment in order to harness their distinctly different consumer behaviors.
iOS users are generally considered to be younger and bigger spenders, with the general assumption that those willing to pay more for an iPhone are more likely to shell out more money across the board.
A couple other recent points reinforce this. For one, the iOS App Store earns 75% more revenue than the Google Play Store. More recently, according to a report from IBM Commerce, nearly 40% of all online traffic of Black Friday 2015 came from iOS users, with 27% of all online sales coming from iOS devices. Only 8% came from phones and tablets running Android. iOS users also spent and average $125, significantly more money than Android users, who spent $107, according to IBM.
But how do they stack up when it comes to living expenses, particularly renting? We’ve compared the rent payments received on iOS and Android via Pay With RadPad from January through June of this year. Here are some of the findings.
Overall, iOS rent payments make up around 80% of total rent payments that have been processed through June, while Android makes up close to the other 20%. It also seems that iOS renters have fallen in line with that user base’s proclivity to spend more. The median rent payment for iOS users was $1,251 compared to the median Android renter’s monthly payment of $1,095. The difference may not seem huge at first glance, but that means that Apple fanboys and girls are paying a whopping $2,000 more on rent annually than their Android counterparts. You could buy a few iPhones with that!
Next, let’s take a look at the median monthly rent that renters are paying for their apartments in five of the biggest rental markets in the country on iOS versus Android. This is especially interesting data for the real estate market as rent price reports are often based simply on listing prices. These are the actual median rent payments that renters are making across these five cities. Note: some of these payments include splitting rent bills between multiple renters.
As you can also see in the graphic above, Apple Pay is a relatively small but growing percentage of digital rent payments. Tim Cook noted yesterday that three-fourths of contactless payments in the U.S. are made through Apple Pay. The payments platform is also increasingly being used to pay consumers biggest monthly bill.
Nearly 8% of rent payments made by renters through June have been Apple Pay payments. The median apartment rental payment that users are putting on Apple Pay is $1,250 — nearly the same as the overall iOS rent payment median.
Interested in paying rent online? Or with your iPhone, Apple Pay or Android? Check out Pay with RadPad today!