MasterCard unveils cashback offer on rental payments

MasterCard has announced a new partnership with US bank Wells Fargo and tenant loyalty programme Bilt Rewards. The result of their collaboration is the launch of a new credit card combined with cashback. But beyond the form, it is in the substance that it stands out as a first illustration of MasterCard's new Open Banking strategy.

FACTS

• Wells Fargo is partnering with Bilt Rewards and Mastercard to issue the first credit card that gives all renters access to cashback on rent payments.

• The new Bilt Rewards card is completely free and is to be used by cardholders to pay their rent or by using their card for other purchases. In this way, they will earn loyalty points.

• The points earned through the Bilt Rewards programme with the card can then be exchanged for travel, fitness classes or even value, to create a down payment for a property purchase.

CHALLENGES

• Opening an existing programme: The Bilt Mastercard was previously only available by invitation. The signing of a partnership with Wells Fargo makes it possible to democratise this programme and make it accessible to all American renters. Wells Fargo serves 1 in 3 American households and has over 70 million customers.

• Revaluing rent: $500 billion is spent in the United States each year on rent; there are an estimated 109 million renters in the United States. Compared to buying and owning a home, paying rent can be a wasteful investment. Today, Bilt Rewards is able to leverage its partnership with MasterCard and Wells Fargo to increase rent through its rewards offer.

• Facilitating access to property: The new Bilt Rewards programme intends to serve as a democratisation tool for access to property by becoming the first programme to allow the conversion of its cashback into a down payment, thus reducing the mortgages of future owners.

MARKET PERSPECTIVE

• Bilt Rewards is the leading tenant loyalty programme in the US. Launched in 2021, it is the result of an alliance signed between the largest American landlords and property managers (AvalonBay, Blackstone, Camden, Cushman & Wakefield, Equity Residential, GID, Related, SLGreen, Starwood and Veritas).

• MasterCard has gained a strong partner to illustrate the relevance of its Open Banking strategy. The American payment giant recently presented new tools aimed at securing account-to-account payments thanks to the services of FinTech Finicity. And its "Payment Routing Optimizer" tool will now be used by Bilt Rewards to reinforce its system.