Avesdo Case Study | Real Estate Payments Example

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Products

Payments

eLinx

Digital PAD

Rails

EFT

Use Case

Real Estate Management Software

Integration Time

9 weeks

Intro

A leader in real estate technology, Avesdo provides specialized Transaction Management Software (TMS) that streamlines the selling and sale of new homes. Trusted by hundreds of developers and handling billions in transactions annually, Avesdo identified a critical industry challenge: the inefficiency of new home real estate transaction processes.

This case study explores how Avesdo strategically integrated VoPay's advanced payment solutions to address these pervasive inefficiencies and improve its market position.

The Problem

Core Challenges Identified

1. User-Centric Payment Inefficiencies

Traditional payment methods such as cheques and wire transfers cause significant challenges for real estate developers. These outdated methods lead to prolonged payment reconciliation periods of up to 45 days, cause massive headaches, and impose a heavy administrative burden.

2. Cost and Capacity Barriers

While the platform's initial credit card solution was sufficient for the initial $5,000 deposit, its use became problematic for larger real estate installment deposits due to prohibitive processing costs and transaction limits. These limitations made credit card payments impractical and hindered the platform’s ability to allow developers to manage large real estate transactions at scale.

3. Limited Market Reach

Avesdo’s business model primarily targeted developers, which, while initially effective, limited its potential for broader market engagement. Focusing exclusively on one customer segment restricted opportunities for growth and innovation across the broader real estate transaction market, thus constraining its overall market reach and revenue capabilities.

The Solution

Avesdo wanted a digital-first approach to respond to these challenges and amplify its market standing. By partnering with VoPay, Avesdo improved service efficiency and established itself as the preferred platform for developers, ensuring a superior user experience in the competitive new home sales market.

By integrating with VoPay’s payment technology, Avesdo can offer users much more, strengthen its competitive advantage, and expand its market share.

VoPay’s Advanced EFT and Digital Pre-Authorized Product

VoPay’s EFT product delivers a robust and secure solution for electronic funds transfers, designed specifically for business applications like Avesdo’s real estate transaction management. Using VoPay’s proprietary eLinx payment technology, a link is sent directly to purchasers to simplify the process of capturing bank details securely. This method reduces input errors and employs advanced tokenization to protect sensitive data. Each link is unique, tailored to its recipient, enhancing the traceability and security of each deposit.

Seamlessly integrated into Avesdo’s platform, this ensures transactions are traceable and automated with real-time notifications for transparency. Key security features like fraud detection and multi-factor authentication safeguard against threats, ensuring compliance and reliability in high-stake real estate transactions.

How It Works

For The Purchaser

For The Developer

Integrating VoPay’s EFT solution, Avesdo has enhanced the platform, delivering unprecedented financial efficiency. With this system, bank account payments are processed—pulled, cleared, matched, and reconciled—in six days or less, allowing developers to process construction draws faster than ever before.

• Project - Huckleberry Lane

• Strata Lot - LMS1234

• Deposit - #3 for $150,000

“As a real estate developer, we love it. While deposits are officially contractually obligated payments, up until this point, we have always been on the defence, chasing and trying to get purchasers to do it. With Avesdo’s payment integration it puts us on the offence. We aren’t spending time chasing trying to get them to do something they are contractually obligated to do.”

- Avesdo platform user

The Results

A Superior and Unmatched End User Experience In New Home Sales

Integrating VoPay’s advanced EFT solution, Avesdo has enhanced the platform, delivering unprecedented deposit payment efficiency. With this system, bank account payments are processed—pulled, cleared, matched, and reconciled—in six days or less, allowing developers to access construction draws faster than ever before.

“We didn’t know how long it was taking us to process and reconcile cheques and wire transfers until we saw the immediacy of EFTs.”

- Avesdo platform user

• Automated Payment Notifications: Developers no longer need to manually remind purchasers of pending payments, as the system automatically handles notifications according to the transaction timeline.

• Speeding Up Transactions: Payments are processed much quicker than traditional methods allow. As soon as a payment is made, it's promptly processed and reconciled, reducing the process from an average of 45 to 6 days or less.

• Reducing Administrative Load: Automation and increased transaction speed reduce the administrative tasks developers previously faced- from chasing, to manually tracking, to auditing, to reconciling, to reporting - allowing them to focus more on core development activities rather than managing payment processes.

• Enhancing User Experience: The overall user experience on the Avesdo platform is greatly improved for both developers and purchasers. Developers can manage their projects more efficiently with reliable, fast, and transparent transaction processes, while purchasers can meet their contract obligations within a few clicks.

Market Expansion and Revenue Growth through Payment Partnership

“It is interesting to see how truly seamlessly it has worked right out of the gate.”

- Ben Smith, President, Avesdo

• Advanced Platform Capabilities: Avesdo is one of the only platforms in North America that integrates a complete payment system with point-of-sale and transaction services for new home real estate. This setup allows Avesdo to process transactions directly—a capability competitors lack—establishing it as the region's premier e-commerce-ready real estate platform. This gives Avesdo a significant competitive advantage by simplifying real estate transactions.

• Expanded Customer Base and Market Reach: The expanded functionality has broadened Avesdo’s customer base, creating new expansion opportunities locally and in new markets.

• New Revenue Opportunities: The new features have opened up fresh revenue streams, established an additional income channel and enhanced Avesdo’s financial gains from every transaction.

• Cost-Effective Solutions: The enhanced services are now more cost-effective, offering a compelling alternative to traditional payment methods such as personal checks and wire transfers. This affordability aims to attract a broader user base, making it easier for more clients to adopt the platform.

• Future Growth Potential: The capabilities unlocked by the initial enhancements are just the beginning. Avesdo is poised for further innovations and market expansion, potentially developing new services and entering previously inaccessible markets, solidifying its position as a leader in technology-driven real estate solutions.

"By digitizing the payment, we can automate so many new things that were previously manual. This opens up a whole new channel for us and creates a new revenue stream. For us, this is just the beginning. With payments integrated into our system, we see a variety of product and feature enhancement opportunities to explore that will help us serve our customers even better and deliver on our promise to help them sell more homes faster, for more money with less risk."

- Ben Smith, President, Avesdo