By: Marissa Ross
Lily Liu, the dynamic CEO and visionary behind Piñata, a groundbreaking rental rewards app revolutionizing the rental market. Born from her personal experience Lily was inspired to create a solution that rewards renters for their largest monthly expense while helping them build credit. In this interview, Liu dives into her motivations and how Piñata is taking the fintech and real estate markets by storm.
Lily, can you share the story behind the founding of Piñata and what inspired you to create a rental rewards app focused on building credit and offering rewards?
As a long-term renter, it was always shocking to me that renters get nothing back for their largest monthly expense. In particular, I’m referring to a reward and credit building program for renters that is organized around a simple premise: Pay Rent, Get Rewards, Build Credit. This idea was and still is the bedrock for Piñata, and this is what we always come back to. Think about it: You get rewards when you pump your gas, when you fly or book a hotel room, but not for people’s largest monthly expense? Simply put, my co-founders and I wanted to create something that would make renting more rewarding and help people improve their financial health. Ultimately, that’s how Piñata was born—out of a desire to turn a monthly obligation into an opportunity–and build a new vision we call Renter Nation.
What were some of the biggest challenges you faced when starting Piñata, and how did you overcome them?
Gosh, where do I start? First of all, real estate, unlike airlines or credit cards, is a fragmented industry that is notoriously resistant to change. Moreover, legacy players–in particular, large scale property managers–weren’t keen to open up their platforms and looked at the world from a very defensive perspective. However, over time, the mentality has changed and now we see a real seismic shift, where everyone knows rewards and credit building are essentially table stakes. And the best part is that we spent the past few years building out industry leading tech that now is ready for primetime. Separately, it took some time for renters to fully understand the Piñata value prop, especially our target renter which is the everyday renter working hard to make ends meet. One thing I’m super proud of is our brand spearheaded by the Mighty MAX, our beloved mascot, who represents a smart, snappy new way to be a renter. After all, MAX wouldn’t live in a rental unit that didn’t offer rewards and credit building. Check out MAX and Piñata and you will get a sense.
Building credit can be a complex process. How does Piñata simplify this for renters and ensure they are getting the most benefit from the app?
Aside from the fact that we have made the process seamless and effortless from a renters’ perspective by automating the reporting process to the credit bureaus, we offer Edutainment programs that are designed to educate, inspire and build financial resilience. We are also one of a handful of companies that are part of the Freddy MAc Multifamily network, which is a phenomenal program that makes offering credit building a ne-brainer for almost all property managers.
Can you discuss the impact Piñata has had on its users so far regarding both credit building and the rewards offered?
Piñata has been a game-changer for many renters, where we have seen credit scores for subprime renters rise by hundreds of points, which can truly change someone’s life. For people with normal credit, we usually see increases in people’s scores by 60+ points.
As an immigrant and female founder, how have your experiences shaped your approach to building and growing Piñata?
As a first generation immigrant and female entrepreneur, I had no choice but to learn to be resilient, scrappy and develop my version of entrepreneurial moxy. Consequently, I think my experience also made me value inclusivity and diversity from a personal place, which we’ve tried to bake into Piñata’s DNA both internally and externally. Let’s make rent smarter and better for all renters!
What role has technology played in the development and success of Piñata, and how do you see technology evolving in the rental market in the future?
Ultimately, Piñata is a tech company so it runs through everything we do. The key will be staying abreast of the next wave, which basically equates to the savvy and seamless integration of AI into our core offering, how we streamline our processes, and even how we extend or embed Piñata into other platforms to power their experiences.
Piñata recently launched a new and enhanced ‘New Renter Membership Program.’ Can you tell us more about this initiative and its benefits to new renters?
Basically, Piñata’s new program is designed for all renters whether their landlords are part of the Piñatra network or not. This means that finally every renter anywhere can pay rent, get rewards and build credit in one seamless ecosystem.
What are some of the key strategies you’ve used to scale Piñata and reach a broader audience?
Our strategy has been a mix of direct sales, channel partners and integrating into large scale platforms for maximum market penetration. Separately, we’ve focused on a blend of ambassadors, a bit of paid, and developing our owned channels, in particular Instagram and Linkedin, to spread the word.
Piñata recently introduced Piñata Pay. Can you tell us more about this feature and how it benefits users?
Piñata Pay is the completion of our ecosystem where we offer renters everywhere the ability to pay rent, get rewards, and build credit. If early indicators prove to be the trajectory, then we really see Piñata Pay becoming the de facto payment option for rent and every other expense in renters’ life.
What advice would you give to aspiring entrepreneurs, especially women and immigrants, who are looking to make their mark in the tech and real estate industries?
My advice is to stay persistent and believe in your vision. Surround yourself with a supportive network of mentors and peers who can offer guidance and encouragement. Embrace diversity and inclusivity in your approach, and don’t be afraid to take risks. Lastly, focus on solving real problems and creating value for your users; this will drive your success and set you apart in any industry.
Published by: Nelly Chavez
