How Does Bilt Make Money? A Comprehensive Look at Bilt’s Business Model

Bilt is a unique rewards program that allows users to earn points on their rent payments, among other everyday expenses. Traditionally, rent payments were a significant monthly expense that didn’t offer any benefits or rewards. Bilt has changed this by introducing a system that rewards tenants for paying rent while also offering a suite of credit card features for earning points on other purchases.

In this article, we will break down how Bilt makes money, focusing on its business model, revenue streams, and partnerships. We’ll explore how Bilt generates revenue from its credit card, partnerships with landlords, and how its rewards program contributes to the company’s profitability.

1. Bilt Mastercard: Credit Card Revenue

At the heart of Bilt’s business model is the Bilt Mastercard, a no-annual-fee credit card that allows users to earn rewards points on rent payments and everyday purchases. Like many financial institutions that issue credit cards, Bilt earns money in several ways related to the card’s use.

How Bilt Earns Money from Its Credit Card:

• Interchange Fees: Every time a user swipes the Bilt Mastercard for a purchase, the merchant pays a transaction fee. A portion of this fee, known as the interchange fee, is collected by Bilt. While these fees are small per transaction (typically 1% to 3% of the purchase amount), they add up over millions of transactions.
• Interest on Balances: If a cardholder carries a balance on their Bilt Mastercard, they are charged interest. Like other credit cards, Bilt earns money from these interest payments, especially from users who do not pay off their balances in full each month.
• Fees: While the Bilt Mastercard has no annual fee, it may still collect revenue through other fees, such as late payment fees, cash advance fees, or balance transfer fees.

Why Bilt is Attractive to Users:

• Earn Points on Rent: One of the most attractive features of the Bilt Mastercard is that users can earn points on rent payments without paying transaction fees, which is rare for credit cards.
• No Annual Fee: Unlike many rewards credit cards, Bilt charges no annual fee, making it accessible for a wider range of users.

The Bilt Mastercard is a critical part of the company’s business model, allowing Bilt to earn revenue through traditional credit card mechanisms while providing a unique value proposition for users who want to earn rewards on rent.

2. Partnerships with Property Management Companies and Landlords

Bilt also makes money through partnerships with property management companies and landlords. The company has developed a network of landlords who accept rent payments through the Bilt Rewards program, allowing tenants to earn points when they pay rent with the Bilt Mastercard.

How Bilt Earns Money from These Partnerships:

• Property Management Fees: Bilt partners with property management companies and landlords who may pay a fee to be part of the Bilt Rewards Alliance. This partnership benefits property managers by offering tenants a valuable incentive — the ability to earn rewards points on rent — which can help attract and retain tenants.
• Increased Rent Payments through Bilt: By integrating with property management platforms, Bilt increases the likelihood that tenants will use the Bilt Mastercard for rent payments. This leads to higher transaction volumes, which increases Bilt’s revenue from interchange fees on these transactions.

Benefits to Property Managers:

• Tenant Retention: Property managers who offer Bilt Rewards may have a competitive edge, as tenants are more likely to stay in a building where they can earn rewards on their rent.
• Simplified Rent Collection: Bilt’s partnerships also streamline the rent payment process, making it easier for landlords to collect payments on time and reduce the administrative burden.

By building a network of property managers and landlords, Bilt creates a consistent revenue stream while providing value to both tenants and property owners.

3. Bilt Rewards Program: Value for Partners

The Bilt Rewards program is a key aspect of the company’s revenue model. Through Bilt Rewards, users earn points on rent payments, as well as other purchases made with the Bilt Mastercard. These points can be redeemed for a wide range of rewards, including travel, fitness memberships, home decor, and even future rent payments.

How Bilt Makes Money from Its Rewards Program:

• Affiliate Partnerships: Bilt partners with airlines, hotels, and other companies that participate in the rewards ecosystem. When users redeem points for flights, hotel stays, or other rewards, Bilt may receive compensation through affiliate agreements with these companies. These affiliate deals help Bilt monetize the redemption process, as companies are willing to pay for new customers or loyalty points redeemed with their services.
• Cross-Promotions and Brand Collaborations: Bilt has formed strategic partnerships with well-known brands like Airbnb, SoulCycle, and Shopify. These brands may pay Bilt to promote their services within the rewards app, offering special deals or exclusive promotions to Bilt users in exchange for exposure to a targeted audience.

How Users Benefit from the Bilt Rewards Program:

• Travel Rewards: Bilt allows users to transfer points to travel partners, including major airline and hotel loyalty programs, making it attractive for frequent travelers.
• Future Rent Payments: Unique to Bilt, users can also use their points toward paying future rent, helping them save on one of their biggest monthly expenses.
• Fitness and Lifestyle Perks: Bilt points can be redeemed for fitness memberships, events, and more, adding to the program’s versatility.

By offering attractive rewards and partnering with travel and lifestyle brands, Bilt creates a loop where users are incentivized to keep spending and earning, which, in turn, generates revenue for the company.

4. Data Monetization and Insights

As with many tech-driven financial companies, Bilt likely collects valuable user data that can be monetized. While Bilt emphasizes its commitment to privacy, anonymized data related to consumer spending habits can be highly valuable to brands and businesses looking to better understand their customers.

How Bilt Might Monetize Data:

• Consumer Insights for Partners: Bilt can offer anonymized consumer insights to its partners, including property managers and brands in the rewards ecosystem. For example, Bilt may provide data on how users are spending their rewards points, which offers are most popular, or how often tenants are using their Bilt Mastercard for rent payments versus other purchases.
• Targeted Offers and Promotions: By analyzing user behavior, Bilt can create targeted offers and promotions, encouraging more spending in categories where users are most engaged. These promotions can be monetized through partnerships and affiliate deals, as brands pay to have their offers prominently featured to Bilt users.

While data monetization isn’t Bilt’s primary revenue stream, it could be a valuable aspect of the company’s long-term strategy as the user base grows and more spending data is collected.

5. Strategic Partnerships with Financial Institutions

In addition to its direct partnerships with property managers and brands, Bilt has likely developed relationships with financial institutions that play a role in issuing the Bilt Mastercard and managing the rewards infrastructure.

How These Partnerships Work:

• Card Issuer Agreements: Like most credit card companies, Bilt likely partners with a financial institution that issues the Bilt Mastercard. In exchange for offering this card, Bilt may receive financial compensation or share in the revenue generated from interchange fees and interest charges.
• Rewards Infrastructure: Financial institutions and third-party providers may also help manage Bilt’s rewards infrastructure, allowing users to seamlessly earn and redeem points. These partnerships contribute to Bilt’s operational efficiency and its ability to scale the rewards program.

The Benefit of Financial Partnerships:

• By partnering with established financial institutions, Bilt can focus on its core offering—rewarding users for rent payments—while outsourcing many of the technical and financial aspects of running a credit card and rewards platform.

6. Potential for Premium Memberships or Subscription Services

While Bilt currently offers a free service, the company may introduce premium features or subscription services in the future as a way to generate additional revenue. For example, Bilt could offer a premium version of its app with exclusive perks, higher rewards rates, or additional features like financial insights or rent reporting to credit bureaus.

How Premium Services Could Generate Revenue:

• Subscription Fees: A premium membership could come with a monthly or annual fee, providing Bilt with a recurring revenue stream.
• Enhanced Rewards: Premium users may earn higher rewards rates on rent payments or other purchases, incentivizing users to upgrade while increasing spending on the Bilt Mastercard.

While this is speculative, premium services could offer a path to future growth and profitability for Bilt, especially as the company scales.

Conclusion: How Bilt Makes Money

Bilt has created an innovative business model that disrupts the traditional rent payment process by turning rent into a rewards-earning opportunity. The company makes money primarily through its Bilt Mastercard, earning revenue from interchange fees, interest payments, and partnerships with property managers. In addition, Bilt leverages affiliate marketing and partnerships in its rewards program to generate further income while offering valuable perks to users.

By tapping into the financial potential of rent payments—one of the largest expenses for most individuals—Bilt has carved out a unique space in the rewards market. As the company continues to grow and expand its offerings, there are likely to be even more opportunities for monetization, whether through data insights, premium services, or new financial partnerships.