The news: Rent-based credit card provider Bilt will buy hyperpersonal rewards company Banyan, per a press release.

The two first partnered last year, using Banyan’s item-level receipt data to offer more personalized rewards at neighborhood restaurants and other local businesses.

Bilt’s rewards build-out: Banyan will power four key offerings for Bilt cardholders.

• FSA/HSA savings: Bilt will be able to identify purchases eligible for FSA/HSA savings and automatically file for reimbursement.
• New resident perks: Local stores will be able to offer rewards on home goods for Bilt cardholders who move into the area.
• Targeted rewards: Big brands will also be able to use Bilt to offer discounts at local retailers.
• Cross-merchant experiences: Merchants will be able to offer things like validated parking for certain purchase thresholds.

The strategy: Bilt needs to get consumers to spend more on its card than their rent payments.

Because of how many consumers use the card exclusively for the valuable rent payment rewards, co-brand partner Wells Fargo has reportedly lost as much as $10 million a month on the card.

Offering a broader variety of rewards—particularly rewards that are funded by merchants who partner with Bilt—could help get the portfolio’s economics on a surer footing before Bilt rolls out bigger changes like annual fees.

Will it work? Maybe.

Bilt is running into something of a “chicken and egg” situation.

• If Banyan’s personalization comes from item-level receipt details, then Bilt isn’t going to get much information from the consumers who almost exclusively use the card to pay for their rent.
• And if they’re not already getting hyperpersonalized offers, they’re less incentivized to use the cards outside of rent in the first place.

Bilt will have to rely on the promise of future personalized offers to get customers to use the card more often. But for cardholders who already have other cards that either offer clear cash back or rewards points, it may be a tough sell.