Read more: Bilt Rewards Secures $60 Million in Funding
Mastercard first launched its Bilt Card last year. As PYMNTS reported at the time, the card can be used to pay rent for any accommodation or apartment at no cost. With every payment, cardholders earn points, which can be used for various items such as travel, rent credits, and to make down payments on a home.
Additionally, the card can also be used to make rent payments at properties that do not accept credit cards. Renters pay using the Bilt app and a check is sent to their landlord on their behalf. Renters who rent through the Bilt Rewards Alliance network, made up of owners from across the United States, were among the first to use the card.
A Bloomberg report pointed to Federal Reserve figures that nearly half of all rent payments are made by check or other paper-based methods, while renters who use credit cards can often find themselves charge up to 3% processing fee.
Read more: CompoSecure partners with Bilt to boost home ownership through rental incentives
“It didn’t take long for us to really see the opportunity here,” said Dan Dougherty, executive vice president of co-brand partnerships at Wells Fargo. “You have rent, which is $500 billion every year – not only are you not getting rewards, but if you want to use a card, you’re going to have a charge on that. So let’s solve this.
Mastercard and Wells Fargo were among the backers when Bilt raised $60 million in a funding round last September.