Sometimes there's a market gap for a reason...
Prime Future 209: the newsletter for innovators in livestock, meat, and dairy
From the article, "Wells Fargo Bet on a Flashy Rent Credit Card. It Is Costing the Bank Dearly.":
"In 2022, Wells Fargo launched a credit card with Bilt Technologies, a fintech startup with big-name backers including Blackstone and Mastercard. The co-branded card came with a rare perk: Users can pay for rent with it without incurring fees from their landlords while also earning rewards points. More than one million accounts were activated in the first 18 months, many by young adults."
When I was a renter, I always wished I could pay rent on a credit card so I could get the reward points, but that wasn't ever an option. The sizeable market of renters with a similar aspiration laid the foundation for Bilt Technologies to create a company around a credit card product specifically for the growing market of renters.
The Insight the Bilt founder had was to design the model in a way that did not require the landlord to pay the 3-4% credit card fee in order to accept rent payment via credit card.
Before we discuss the Wells Fargo & Bilt story and its relevance to animal ag innovation, I'll say this: the most fascinating thing about any startup is The Insight, that is at the company's core.
The Insight can be a unique take on the problem itself, a unique take on the solution, and/or a unique take on commercializing the solution. But by definition, a startup founder has some Insight that is the basis for a new product & company.
In the Wells Fargo & Bilt story, The Insight was that a viable model could be executed to reward renters for paying rent with a credit card without penalizing landlords for receiving rent via a credit card. Partnering with a large bank like Wells Fargo would allow Bilt to unlock that model, allowing Bilt to build a sizeable business serving the sizeable market of renters. Genius.
Intriguing start, eh? But here's the rest of the story: