The news: Bilt partnered with United Airlines, offering 2X miles to customers who use their United co-brand card to pay their rent through Bilt’s platform.

United co-brand cardholders will still be subject to Bilt’s 3% fee for using third-party cards when paying rent. 

Why this matters: Bilt wants to expand the reach of its rewards without disincentivizing use of the Bilt Card. It also supports Bilt’s branding as the wraparound rewards platform for the young professional’s life: housing, dining, and travel. Bilt also gets to enjoy better margins on non-Bilt-card transactions.  

Will cardholders bite? Unlikely. Bilt’s key pitch to cardholders is the ability to use the Bilt Card to earn rewards on rent without paying fees. Using a United co-branded card wipes out that benefit with its 3% fee.

Our take: Bilt is trying to extend travel offers to members, but clumsy economics may get things off to a slow start. While Bilt stands to earn valuable margins through third-party card payments, the cost-ineffective nature of using this promotion will likely yield low returns.  

Competitors like the Made Card could trial a more straightforward travel rewards program centered on their own card.