The news: Bilt added Preferred Hotels & Resorts' “I Prefer” Hotel Rewards loyalty program as a transfer partner, per a press release.

• Bilt members can exchange Bilt points to I Prefer points on a 1:2 ratio.
• Point transfers must be in increments of at least 1,000 for Silver, Gold, and Platinum members and 2,000 for Blue members.

Partnering with Preferred Hotels & Resorts portfolio brings 700 independent hotels, resorts, and residential properties across 85 countries to Bilt members. Members can access these rewards whether they have a Bilt co-branded credit card or not. 

How we got here: Bilt’s credit card revamp came with a reshuffled rewards program. While Bilt’s original card had a simple reward structure—buy four bananas and earn points on rent payments—the new card program is anything but. 

Consumers have been confused by the parallel but integrated Bilt points and Bilt Cash systems—with consumers earning both points (which can be redeemed at travel partners and other select merchants) and Cash (which can be redeemed either within Bilt’s rewards ecosystem or put toward earning rewards on their rent/mortgage payments.

Members must spend at least 75% the value of their rent/mortgage on other purchases to cash in on housing-based rewards to earn 1 point for each $1 of spend. (Spending above smaller percentage tiers yields fractional points, while spending 100% yields 1.25 points per $1.) 

This restructure was designed in part to help protect Bilt’s new issuer (Cardless) from eating the losses Well Fargo was incurring—as much as $10 million a month. 

Why this matters: While any Bilt member can redeem points for travel the program has the highest value for cardholders. Building out its hotel portfolio helps Bilt compete against American Express Platinum’s and Chase Sapphire Reserve’s robust travel offerings. This could keep affluent millennials and Gen Zers from ditching the Bilt Card for a legacy premium card.

At the same time, Bilt may lose cardholders over the intense gamification of its rewards. Redeeming points for things like hotels and flights has always been a black box for consumers. However, Bilt’s numerous tiers, point categories, and platforms may erode the luxury value Bilt claims to provide.

Implication for payment providers: Unnecessarily complex reward structures breed suspicion from members. Creating tools for users to understand the value of their points and how they can be redeemed can inject more trust back into a complicated premium rewards experience.

Editor’s note: A previous version of this article conflated aspects of Bilt’s membership program with the Bilt 2.0 credit card. The article has been updated to clarify those distinctions.

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