ADVERTORIAL
The Covid-19 pandemic accelerated a rapid shift to online payments, creating what many describe as a digital gold rush. As businesses moved quickly to meet demand for online browsing, shopping and paying, security was often overlooked. This has had serious consequences. Research by consulting firm Oliver Wyman indicates that online fraud increased by as much as 700% from March 2020, highlighting how many newly implemented payment systems lack adequate safeguards.
For rental agents, this risk is particularly serious. There is no margin for experimentation when managing client funds, and security failures can have severe financial and reputational consequences.
With more than 17 years of experience in South Africa, PayProp has processed over R73.3 billion in trust money without a single loss of trust funds. This track record is rooted in a combination of bank integration, strict operational controls and continuous investment in security.
A key factor is PayProp’s partnership with leading banks. In South Africa, PayProp processes rental funds through Absa, providing bank-grade payment security supported by advanced information security measures. Client data is encrypted both at rest and in transit, securely backed up across multiple locations and protected against the growing threat of cybercrime.
PayProp trust accounts are designated trust accounts in terms of section 32 of the Estate Agency Affairs Act. This ensures that funds are fully protected, with no right of offset by banks or third-party creditors. Beyond security, bank integration enables automated payment reconciliation, rapid distribution of rent to landlords and real-time reporting, all of which are central to efficient rental administration.
PayProp already complies with the forthcoming requirements for operating as an accredited payment processing agent under the Property Practitioners Act and its associated regulations. The company operates a fully auditable trust environment with mandatory segregation of trust funds, not only by agency but also by individual consumers such as landlords and tenants. For compliant agencies using an accredited processing agent like PayProp, this opens the door to applying for exemption from maintaining and auditing their own trust accounts, resulting in significant cost and administrative savings.
Another cornerstone of PayProp’s security model is its approach to fraud prevention, particularly phishing. All transactions are executed according to predefined rules set by the agency, meaning no employee can redirect funds to an unauthorised beneficiary without leaving a permanent audit trail. Duties are segregated so that no single employee can complete a transaction from start to finish, and all trust account activity requires dual authorisation.
Daily reconciliations are overseen by PayProp’s dedicated client money reconciliation team, supported by automated alerts for account activity. Trust accounts are audited annually and reviewed for compliance by the property regulator, providing further assurance.
This security infrastructure benefits not only agents, but also landlords and tenants. Funds are held separately from business accounts, reconciled daily and fully transparent. Landlords can track rental payments, portfolio income and third-party transactions in real time via the PayProp Owner app, with data reflecting bank records accurately. Tenants benefit from the same transparency through access to current and historical invoices and statements.
Despite its strong track record, PayProp continues to invest in strengthening its security architecture. Regulatory change, emerging threats and evolving technology demand constant vigilance. Protecting client funds requires ongoing innovation and a proactive approach, ensuring that rental agents and their clients can operate with confidence in an increasingly digital environment.
