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Wells Fargo is Having Second Thoughts About Rent Credit Card Partnership With Bilt

Back in 2022, banking giant Wells Fargo teamed up with fintech startup Bilt Technologies to launch a new credit card that allowed users to pay rent without incurring landlord fees while also earning perks. However, after incurring millions in losses as a result, Wells Fargo is now having second thoughts about the partnership, according to a recent report by The Wall Street Journal.

The Wells Fargo and Bilt credit card proved to be quite successful, with more than one million customers signing up for it in less than two years. While the partnership boosted Bilt’s standing and helped its $1.5 billion valuation double, Wells Fargo wasn’t so lucky.

The initial thought by Wells Fargo executives was that the users would carry balances on the credit card, but that wasn’t the case. Now, the bank is reportedly having up to $10 million monthly loss from the program and isn’t keen on continuing it once its original contract with Bilt expires in 2029.

Under current conditions of the agreement, Wells Fargo pays Bilt $200 for every newly issued card. The two companies also split fees gained from payments that don’t include rent.

The Wall Street Journal points out that Wells Fargo’s position could change if the terms were to improve in its favor. The two sides have been engaged in a series of renegotiations in the past several months. 

“As with all new card launches, it takes multiple years for the initial launch to pay off,” Wells Fargo’s spokeswoman told The Wall Street Journal in a statement. “We look forward to continuing to work together to…make sure it’s a win for both Bilt and Wells Fargo.”

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