Bilt Rewards is the first neighborhood loyalty platform, says General Catalyst chairman Ken Chenault

Ankur Jain, Bilt Rewards founder and CEO, and Ken Chenault, General Catalyst chairman and managing director and Bilt Rewards board chairman, join 'Squawk Box' to discuss the company's rewards program, how Bilt partners with real estate owners and allows its users to earn points when paying their rent, and more. For access to live and exclusive video from CNBC subscribe to CNBC PRO: cnb.cx/2NGeIvi
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[@SavanaT]

This gentleman won't answer the question !! 🙏

[@wm6746]

Andrew and Rebecca are asking great questions. The guy is on defense because he changed his idea for money/ valuation

[@FlutterPythoncombo]

£3 BILLION valuation for a company in which the founder can't even explain how business model works! Shady AF

[@feed730]

They cant even explain how it works?

[@doomlord224]

I'm pretty sure Bilt subsidizes the rewards as a "marketing expense." I think the reason he wouldn't say this directly is it contradicts what he said about Bilt making revenue from processing payments (instead they're losing money on rent payments), and because it implies that most of their revenue is from interest/fees on the credit card balances. That makes Bilt sound like a less "mission-oriented" company, and more just like another credit card.

[@RSquared-travel-rewards]

I largely agree with you in that they are likely not as profitable as a payment processor. For the use cases where consumers have a check generated by BILT, that's a 100% losing proposition for BILT. The other payment methods for paying rent is likely soft. BILT has now pivoted hard to pushing BILT Dining because the store owner is going to pay for most rewards going back to the consumers. Notice that BILT has dramatically shifted the way individuals can earn status which requires significantly more spend which supports your statement that they need to make revenue for interest & fees. So yes, they are morphing into the traditional credit card model but they still have these innovative programs which continue to make the card interesting. I will continue to extract as much value from the card until the gravy train dries up.

[@STasugx]

Why would it be so bad to say that, though? The benefit to the consumer is still there: earning points on rent (without fees).

[@doomlord224]

I’m guessing the target audience of this segment is more investors than it is customers, and losing money on rent payments (by funding rewards) makes Bilt’s business model sound like less of a home run

[@jjeverson2269]

@@doomlord224seems like a Ponzi scheme

[@jjeverson2269]

@@doomlord224tired of the bs tech companies just being another credit card company. It would have to assume that renters do not default on their payments for them to make profit

[@ronsilva7394]

If you can’t understand it don’t invest in it , simple .

[@jesse_on_youtube1]

I don't understand how you raised that much money when you can't even pitch to your potential customers..

[@kevinli769]

looks like Wells Fargo is funding most of Bilt's rewards program from its corporate balance sheet. it's sad story for Wells Fargo's investor.

[@Superformance]

They profit when you don't pay the CC bill and get boned with 30% APR, he just doesn't want to say it out loud

[@seth8629]

Ken is going to fire Ankur within 2 years

[@Zero11_ss]

Any kind of "rewards" will be paid by yourself in the form of a fee or higher base price for whatever you are buying - in this case the rent.

[@Superformance]

Nah, you'll be getting rewarded from others not paying their bill and paying 30% APR

[@Zero11_ss]

@@SuperformanceThe vast majority of their earnings come from data processing fees and from service fees charged to the business you buy from. Thinking you are just getting paid from the group of people who pay late is just the fantasy they sell you on.

[@jelanimillard1217]

Ok he is definitely hiding something. He is not being clear at all as to how the business works. But this is what I THINK he is trying to say.... The processing fees and platform charges are exchanged for some percentage of kickback as renters use the card OUTSIDE of paying the rent. I believe that is the offer he is selling to the likes of landlords like Related. "Hey Landlord instead of earning the 2-3% fee or kicking it back to the customer, offer Bilt reward points instead and simply earn percentages on spending outside of your property ("local economy")" In short, I think Wells Fargo is holding the bag here. It has to be millions in losses in hopes for high spend.

[@California_Chronicle]

Ken might change his mind after this interview 🤣

[@RadBunny2269]

“It is the mark of a charlatan to explain a simple concept in a complex way.” - Naval Ravikant

[@jayy3c]

from what i am understanding. The landlord pays for the rewards. So this doesn't solve the affordable housing problem.

[@gregb5876]

I guess Bilt makes up for the rewards on ACH payments because they require 5 additional credit card purchases. Doesn't seem like that math will add up

[@miguelbaca8086]

I have the Bilt card, I like may card, but man were they bad at explaining the overall concept… like dude you work there… I don’t even work there and I can explain it better than they did

[@RadBunny2269]

If the person who owns & runs it won’t explain it clearly, that’s a service one may want to move on from.

[@miguelbaca8086]

@@RadBunny2269 Not really, just cause they aren't really media trained doesn't mean that its not that hard to explain the product..... hence why I use it

[@Superformance]

@@RadBunny2269 he just doesn't want to admit their profits are off struggling renters not paying off the CC and carrying a balance

[@hamzajazmati7438]

Why are they avoiding the answers! They should say our fees are private and move on

[@danwickramasinghe4744]

I'm already doing this with my credit card with my landlord 😮

[@jaypatel490]

Andrew MVP

[@saturn1616]

so essentially, an intermediary cog ?

[@edwinrivera4735]

Read the terms and you find the rewards are paying for your rent history and who knows what else. They report your payment activities to credit agencies that you can't opt out of. Watch this space when Bilt screws up your rent payments or reports incorrect info to credit agencies. "The community" my a.... Data is big money and rent data I'm sure is no different.

[@wm6746]

He changed the business plan as she said …

[@Karan-zz8eh]

Landlords aren't paying for it. Renters aren't paying for it. No one is paying for it. YOU WRITE IT OFF

[@CS-qh2jg]

lmao

[@danielscott1409]

Right so I go down to the shop in my neighborhood because it's close to my house and these douche's make money by fleecing the store owner, just what the world needs

[@RSquared-travel-rewards]

I don't see how they fleece the store owner. BILT helps promote the local restaurant through their app and gives us the consumer the opportunity to frequent the stores which are offering loyalty points. So rather than the store owner having to promote 5% discounts, it is taken care of within the BILT app.

[@kblack101]

For example! Let’s say processing fee is $6.95, that split with visa (assessment fee) and the issuing back (interchange fee). A percentage of the interchange fee buy the reward points. So Bill isn’t really profitable, that’s why he can’t answer.

[@Superformance]

They profit when you carry a balance

[@keshmalik2992]

OMG! They won’t answer the question.

[@ctcristo]

This guy Jain makes no sense. Landlords aren't paying for it. Renters aren't paying for it. Bilt is paying for it.

[@boeingceo]

I think I'm starting to get the idea of scamming. Spend 10 minutes not answering a question.

[@erussell734]

Why go on a TV to NOT answer questions? This video is a waste of time unless you want to watch someone NOT explain this business or how the hell they ever got $200Ms.

[@citizenprotection]

Garbage

[@asadm9522]

Not a good interview for his business. He cant answer the questions. Looks slimy.

[@suprashank]

BILT is a great credit card which I fear won't be around for long... So use it till it is around 😢

[@RadBunny2269]

1) BILT’s clearly using rent as a loss leader to draw users in & bet that they’ll shift their non rent spend to the card too so they can make profit off of that. 2) It’s also clear that the landlords will be the ones subsidizing the rewards once BILT stops paying for them. I doubt this model will withstand the test of time. And it’s definitely not mission driven but just another credit card looking for commission.

[@adityapatel9735]

afaik landlords will have no impact since they don't pay any fees. they are basically getting money from ach or check.

[@amrita3000]

People who don't have enough to make rent each month are the ones who will be paying the rewards.

[@adityapatel9735]

@@amrita3000 as of now wells fargo is the one taking the hit. I am paying exactly as much rent with bilt as without it.

[@j.r.1426]

He has not answered several questions which were good questions