Wells Fargo has joined forces with real estate startup Bilt to let customers earn points and miles on rent payments through a new credit card, the companies announced Monday (March 28).
Read more: Bilt Rewards Nets $60M in Funding
Mastercard first launched its Bilt Card last year. As PYMNTS reported at the time, the card can be used to pay rent at any rental unit or apartment with no fees. With each payment, card owners earn points, which can be used for various items such as travel, rent credits and to make down payments on a home.
In addition, the card can also be used to make rent payments at properties that don’t accept credit cards. Renters pay using Bilt’s app, and a check is sent to their landlord on their behalf. Tenants who rent through the Bilt Rewards Alliance network, which is made up of property owners from around the U.S., were among the first to use the card.
A Bloomberg report pointed to figures from the Federal Reserve that said nearly half of all rent payments are made with checks or other paper methods, while renters who use credit cards can often be charged up to 3% in processing fees.
Read more: CompoSecure Teams With Bilt to Drive Homeownership With Rental Rewards
“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 do you not get rewards, if you want to use a card you’re going to have fees on that. So let’s solve that.”
Mastercard and Wells Fargo were among the backers when Bilt raised $60 million in a funding round last September.
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