How the heck does Bilt make money with all the things they offer? I’d love to understand the financials behind this, their revenues and costs broken down in a Sankey diagram would be awesome to see.

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You can’t, since they’re private, but the model seems like the business is mostly transferring money from VCs to their customers and employees.

likefunny

Agreed, if only we could though. It would scratch the itch.

Interest rates which the majority of people incur monthly

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Card issuers make a very small portion of their money on interest. The real money is in the interchange fees.

(I used to work in this industry on the issuer side.)

Credit card networks charge merchants a fee, varies with merchant code and card type, but usually 3%+. The card network takes a relatively small slice of that, and the card issuer gets the rest. Bilt cards are issued by Wells Fargo, and they presumably split that fee income by some mutual agreement.

A lot of Bilt's benefits are basically promotions (free subscriptions, credits) for third parties. Bilt most likely doesn't pay anything for those. Point transfers to partners likely cost Bilt less than the obvious face value, because those partners want the business.

Plus, plenty of points go unused or spent on low-value redemptions. As long as the average of the benefits they pay out is less than 2% or so, they make money.

(I have no idea if/how they make money on the rent thing, that may very well just be a loss leader to get the card in peoples' wallets. But the rest of their benefits seem pretty much par for decent cards.)

helpful

They claim to be profitable https://www.housingwire.com/articles/bilt-rewards-which-converts-rent-payments-into-points-hits-1-5b-valuation/

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Do y’all have a good experience with that card? I’ve been debating for months if I should take out.

Anyone know off hand if they charge a foreign transaction fee?

They don’t! Just used it in Canada

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