Originally Posted by
phltraveler
The mechanism is really academic, either:
1. Cardless is getting the swipe fees and buying the points from BILT at whatever rate; or,
2. Cardless is passing a (large) portion of the swipe fee through to BILT, which is used to fund points.
Either way, the meat in making the card economics work is the non-rent spend (and the BILT cash mechanism to earn points on rent is to make sure it's not a loss if there isn't much or any non-rent spend because then you don't have to award points on rent), and to make BILT grow, they want as much non-rent spend as possible.
I think the second mechanism is much more likely. Cardless doesn't want to take, and isn't taking, much risk as I understand it. The way Bilt 2.0 works, the whatever share of swipe fees Cardless could have gotten may not be able to cover the cost of buying Bilt points. Bilt reward program is more likely to have to take that risk, because it doesn't really have a choice.