Financial Inclusion

MEDICI now! The Neighborhood Pay Services Story

MEDICIVP of Strategic Partnerships

MEDICI now! Startup Stories highlights the companies that are shaping the new financial technology industry. So, keep an eye out each week for new stories! If you or someone you know would like to be highlighted, feel free to send us a note. nps

Company Name: Neighborhood Pay Services (NPS)

Name / Title: Richard A. Levitan/President

Industry Segment: Financial Services

Target: Market(s): United States

LTP: Tell us a little bit about yourself.

Richard A. Levitan: I’ve worked in the financial services industry for over 30 years, serving as Managing Director and Limited Partner at the Kessler Financial Group – the premier strategy, consulting, marketing and investment-banking firm in the payment products industry. There, I launched products with major banks like MBNA, HBSC, and BofA throughout the U.S., Europe and Australia. I’ve also worked as the president at Neighborhood Pay Services in growing our payroll direct deposit platform for rent in the $4B+ rental housing industry.

LTP: Give us a paragraph pitch of your company.

RL: Neighborhood Pay Services (NPS) is a SaaS payment assurance platform provider. We’re best known for our work in the rental housing industry with NPS Rent Assurance® and NPS Rent From Payroll®, where we’ve proven that the strategic use of payroll direct deposit can dramatically improve payment reliability of near prime and subprime credit consumers. Assured access to payroll enables NPS clients to lower the cost for consumers to qualify for and better afford basic goods and services resulting in an expanded customer base, increased sales, increased retention, and lower default rates. NPS has proven that consumers who link recurring charges to payroll demonstrate a commitment at the time of purchase that results in better outcomes.

LTP: In a sentence or two, what problem are you solving today?

RL: We provide improved payment assurance through the strategic use of payroll direct deposit, which results in more affordable access to essential goods and services for non-prime consumers and improved payment reliability for the service providers who extend them credit.

LTP: Who are you selling to?

RL: We’re selling to service providers to more than 50 million near prime and subprime consumers in the U.S. Our principal client base is in rental housing, followed by tuition management in the higher education market.

LTP: Why did you start the company?

RL: NPS was launched with the goal of improving outcomes between service providers and non-prime consumers. We started with renters who without our help would not be in a position to secure a lease due to increased security deposit requirements that often depleted personal savings and that ensured they’ll default on their rent or go into debt to pay rent on time.

LTP: What's the most important change coming to your segment in the next 3-5 years?

RL: The same day ACH through the NACHA Network which is already changing the pace at which funds can be delivered.

LTP: What’s your next milestone?

RL: We’re looking for strategic partnerships with other product and/or service providers who can serve more consumers and improve profitability via direct access to payroll.

LTP: Anything else you want to say to our audience?

RL: Our experience with the NACHA ACH Network uniquely positions NPS to help licensees capitalize on payroll direct deposit, specifically split deposit for recurring charges. Our platform can receive and track installment payments directly from employer payroll and before they ever reach a consumer’s bank account. No other service provides this degree of access to pay period deposits on an automated basis. We’re excited to bring this “first-in-line” access to other providers with a relatively straightforward licensing opportunity.

Bonus - User’s Choice Question!

LTP: If you could change one thing that financial services people do incorrectly, what would that be?

RL: I always find it important for our clients to put themselves in their customers’ shoes – to understand the financial hurdles their customers go through to make on time payments and sustain some level of financial independence and to understand the value in helping to make that happen

LTP: What keeps you awake at night?

RL: Wondering how so many people get by without access to tools to make things easier and more affordable.

LTP: Thank you, Richard!

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Patrick Rivenbark

MEDICIVP of Strategic Partnerships

Patrick is building and strengthening partnerships for MEDICI, FinTech’s Global Knowledge Network. MEDICI enables collaborative innovation within FinTech’s complex ecosystem of banks, financial services providers, startups, investors, and innovations programs