Electronic Payment Systems

The Scottish Social Housing Charter sets out expectations that landlords will support tenants to sustain tenancies, and that includes making it straightforward for people to pay their rent regardless of their circumstances. The Scottish Housing Regulator monitors how landlords perform against Charter outcomes, and rent collection and arrears management sit within that scrutiny. Practically, this means landlords should be offering more than one payment channel and actively considering tenants who don’t have bank accounts, who rely on cash, or who struggle with digital access. A payment system that only works online isn’t adequate for a diverse social housing population, and this framework’s lot structure reflects that, covering cash-in options and prepaid solutions alongside online and direct debit channels.

Scottish local authorities and registered social landlords sometimes need to distribute funds directly to tenants in crisis, whether through discretionary housing payments, Scottish Welfare Fund grants, or other hardship support. Prepaid cards and vouchers offer a more controlled and auditable alternative to cash, allowing the issuing organisation to restrict how funds are used while still giving recipients meaningful purchasing flexibility. The ability to set spend category restrictions, void unused cards, and access intelligent reporting makes these tools well suited to demonstrating responsible use of public funds, which is particularly relevant given the scrutiny social landlords face from the Regulator around financial management.

Payment systems process financially sensitive personal data, which means UK GDPR and the Data Protection Act 2018 apply directly. Any payment system that handles tenant financial data needs to be assessed under a Data Protection Impact Assessment before deployment, particularly where open banking or third-party data sharing is involved. Suppliers on this framework were assessed for their approach to data security and regulatory compliance as part of the quality evaluation. When running a mini-competition or direct award, members should confirm that the proposed solution meets their own data protection obligations and that any data sharing arrangements with third-party suppliers are properly documented. PfH Scotland can advise on what to include in call-off documentation. 

Transitions carry operational risk that’s easy to underestimate. Data migration, tenant communication, integration with housing management systems, and staff training all need to be planned carefully. The risk is higher if your existing system holds historical payment records that need to be carried across, or if tenants are making recurring direct debit payments that will need to be re-established. Some lots within this framework include consultancy support to help with implementation planning, and PfH Scotland can advise on how to structure a transition plan as part of the call-off process. Building transition requirements into your specification from the outset, rather than treating them as an afterthought, significantly reduces the risk of disruption to rent collection during changeover. 

Debt doesn’t usually appear suddenly. Changes in payment patterns, missed payments that are quickly recovered, and switching between payment channels can all be early signals that a tenant is struggling. Lot 7 specifically covers debt assessment tools that use data and analytics to identify risk before arrears escalate, but the reporting functionality available across other lots can also surface useful patterns. Scottish landlords with obligations under the Scottish Social Housing Charter to support tenants to sustain tenancies can use payment data proactively, flagging early warning signs to tenancy sustainment teams rather than waiting until formal arrears action becomes necessary. PfH Scotland can advise on how to incorporate these reporting requirements into your contract specification. 

The Procurement Reform (Scotland) Act 2014 requires contracting authorities to consider how their procurement activity can contribute to economic, social, and environmental wellbeing. The Scottish Government’s Fair Work First policy expects public contracts to include fair employment criteria, including payment of the real Living Wage. When running mini-competitions through this framework, members can incorporate Fair Work First requirements and wider social value criteria into call-off documentation. PfH Scotland can advise on structuring these requirements proportionately and in line with current Scottish Government guidance. 

Yes. Lot 1 includes consultancy services covering a full review of electronic payment requirements, with advice on which products and services best suit the organisation and support for developing an implementation plan. For landlords who aren’t sure which lot or combination of lots is right for them, PfH Scotland can help scope requirements before you access the framework, ensuring you’re procuring the right solution rather than defaulting to what you’ve always used. This is particularly valuable for organisations that have grown through stock transfers or mergers and are managing inconsistent payment systems across different parts of their portfolio.