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Wells Fargo (NYSE:WFC) is planning to back out of its credit-card alliance with Bilt ahead of schedule, calling quits on a money-losing business that offers cardholders rewards points for charging their rent, according to a media report published Thursday.
Bilt is in a period of exclusive discussions with fintech company Cardless to hand off credit card issuance, as the two work together on a revamped Bilt Card 2.0,” the Wall Street Journal report, citing people familiar with the matter.
Meanwhile, the bank’s retreat from the mortgage space, and it was losing up to $10M per month on the Bilt card by mid-2024, the WSJ previously reported.
What’s more, to make the card attractive for rent payments, Bilt designed it so landlords would not have to cover processing fees — leaving Wells Fargo (NYSE:WFC) to absorb most of the cost, the article said. That arrangement was said to have hit the lender with a roughly 0.8% fee on every rent charge.
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