The shift in short-term rental payments
Sarah runs a boutique bed-and-breakfast in Napa Valley. Her business thrives on providing unforgettable guest experiences, but behind the scenes, cash flow challenges are creating continual headaches and stress.
Each month, she waits five to seven days for booking payouts to settle. That means she’s in a constant state of scramble, trying to cover maintenance costs, restock supplies, and meet payroll—and sometimes even finds herself dipping into her personal savings. Meanwhile, larger hospitality chains have immediate access to capital, allowing them to reinvest and scale seamlessly.
Sarah’s story isn’t unique. According to Marqeta’s 2024 State of Payments Report, 90% of U.S. consumers who receive payment faster say it helps them plan their finances. In the short-term rental industry, faster access to earnings is becoming more of a necessity.
For rental platforms, keeping top hosts engaged and financially secure is not just a “nice to have”; it’s a platform differentiator that can have a real impact on opportunity costs.
With digital banking solutions offering real-time disbursements and SMB credit cards providing access to credit and growth opportunities, rental platforms can build a stronger financial ecosystem for their hosts—helping them optimize cash flow, increase financial flexibility, and offer the ability to focus on delivering exceptional guest experiences.
The challenge: cash flow gaps for short-term rental hosts
For short-term rental hosts, financial stability is everything. However, slow payout cycles can create significant hurdles:
- Often, hosts wait days or even weeks to receive their earnings.
- Delayed access to funds can make it difficult to cover operational costs, such as property maintenance, marketing, hospitality staff, or utilities.
- Limited access to working capital can even prevent hosts from reinvesting in their rental properties.
The problem with taking out personal loans to cover these short-term expenses is, obviously, the margin losses when interest catches up on these necessities. It’s no wonder that 35% of consumers surveyed say instant disbursement helps them pay their bills on time, reducing financial stress.
However, major industry players, like hotels, have immediate access and infrastructure already implemented, keeping their operations running smoothly.
The conclusion is that short-term rental platforms and their hosts have reached the point where they need to expand but often lack the right financial platform.
The solution: real-time disbursement access for hosts
What is it?
With tools like Marqeta’s Banking solutions, rental platforms can offer digital bank accounts that enable swift payouts. Instead of waiting for manual processing, funds are available immediately after a booking is completed.
Why it matters:
- Help optimize cash flow: Hosts can get paid faster, keeping them cash-positive.
- Fosters loyalty: Providing financial security can encourage hosts to remain engaged with platforms that support their business growth.
- Encourages reinvestment: Immediate access to funds allows hosts to grow their business.
To put it into perspective, imagine a short-term rental platform enabling faster payouts for their hosts. With Marqeta's digital banking solutions, a vacation rental owner could receive earnings from a booking immediately—rather than waiting several days. This eliminates cash flow bottlenecks and can help increase platform loyalty by streamlining payments.
Again, according to Marqeta’s 2024 State of Payments Report, 87% of U.S. consumers surveyed are attracted to platforms that offer faster pay options—a clear signal that faster access to earnings drives retention and engagement.
SMB credit card programs: a new growth lever for hosts
What is it?
A branded SMB credit card program allows rental platforms to offer hosts access to capital, helping to increase financial flexibility and driving deeper engagement.
How it benefits rental platforms:
- Boosts platform stickiness: A branded card can help strengthen host loyalty and encourage continued engagement with the platform.
- Generates new revenue streams: Platforms can earn interchange revenue while offering value-added financial services.
Instead of waiting for bank deposits, they can use the card immediately to pay for cleaning services, supplies, and home improvements—all while earning cashback rewards for commonly used expenses specifically for hosts.
This can be a major advantage for short-term rental platforms because hosts have regular, high-cost expenses—like furniture upgrades, unit repairs, and cleaning services—that they can easily cover with the card. The potential is incredible for both parties. In fact, in 72% of U.S. gig workers surveyed said they are more likely to stay with a platform that offers financial benefits like faster payment and expense cards.
Embedded finance as a competitive advantage
We’ve seen that the short-term rental industry is fiercely competitive, only getting more so, and embedded finance is emerging as one of the key differentiators for loyalty. One of the more unique aspects of this market is that loyalty is built on hosts instead of a traditional B2C model. The more leeway and security hosts have to create a better experience, the better for everyone involved.
Platforms that integrate real-time disbursements, digital banking, and SMB credit card programs don’t just improve host satisfaction—they can gain an edge over competitors that still rely on outdated payout models.
Why Embedded Finance Gives Rental Platforms an Edge:
- Loyalty & Retention: Hosts prefer platforms that provide faster access to earnings.
- New Revenue Streams: Rental platforms can generate revenue through interchange fees on card transactions.
- Scalability: Integrated financial solutions make platforms more attractive to new hosts looking for better payment options.
Platforms that fail to adopt embedded finance may risk losing their top hosts to competitors, offering faster payments, better expense management, and seamless financial tools.
The future of short-term rental payments is embedded
For rental platforms looking to strengthen relationships with hosts, reduce churn, and drive growth, embedded finance is no longer optional—it’s a necessity.
By offering faster digital disbursements, digital bank accounts to manage finances, and branded SMB credit card programs, rental platforms can create a frictionless financial experience that empowers hosts while unlocking new revenue streams and much more:
- Increases platform stickiness – Hosts are more likely to stay engaged with rental platforms that provide real-time payments and financial flexibility.
- Enhances financial inclusion – Embedded credit solutions help hosts scale their rental businesses without relying on traditional banks.
- Helps future-proof platforms – As the industry evolves, integrated financial services create a competitive advantage.
Learn more about Marqeta's digital banking and SMB credit cards solutions!
