Launch HN: Brex (YC W17) – Corporate Credit Card for Startups • Hacker News Board

Re: Launch HN: Brex (YC W17) – Corporate Credit Card for Startups

#111

Post by cperciva » Fri, Jun 29, 2018, 5:37 PM UTC

kenneth wrote: post #91

cperciva wrote: post #50

Earlier quoted context omitted.

we're building a new rewards program that will launch later this year, would love to hear your thoughts on what a great rewards program looks like for you. Honestly, dollars are fungible. For less sophisticated customers, points which can be redeemed specifically for travel are attractive because people anticipate getting better deals than they end up with; but I'd be disappointed if that works well for the audience…

I disagree. I have no interest in fungible dollars when the alternative is miles which can be used to get outsized return on experiences. I have plenty of ways of making money, and trying to optimize for a %age of cash back is not particularly interesting. Miles and points on the other hand can be used to get experiences that would otherwise be completely out of question due to their price. It adds something meaningf…

Hence my point about people anticipating better deals than they end up with. Averaged over the entire customer base, the value of the rewards received is strictly bounded by the amount the credit card issuer is willing to spend on said rewards.

Re: Launch HN: Brex (YC W17) – Corporate Credit Card for Startups

#112

Post by ckdarby » Fri, Jun 29, 2018, 6:04 PM UTC

Kind of shocked on raising the funds, I guess you have had good adoption on the platform?

Maybe I am missing the point of what is being solved? Access to business credit is a really straightforward process, you can incorporate and with ZERO assets or revenue have a 5k credit card issued on the spot.

In terms of managing credit cards within a company and the other features you're listing out they looked already solved by a company called Emburse, https://www.emburse.com.

I guess this is a run for the market before Emburse takes it over?

Re: Launch HN: Brex (YC W17) – Corporate Credit Card for Startups

#113

Post by kenneth » Fri, Jun 29, 2018, 6:44 PM UTC

StavrosK wrote: post #110

kenneth wrote: post #109

Earlier quoted context omitted.

A first-class ticket on Emirates bought in cash is a whole lot more than $1,500. But it'd be about about the points equivalent of that.

How do you figure? As far as I know, you can't buy points with money, so it's $XX,XXX worth of flights.

Take the Chase Freedom Unlimited card, for example. It ears 1.5% cash-back in the form of points. Those same points can also be transferred to airlines (as long as you have their premium card)

If you have 115,000 points, you can use them towards a $1,150 cash credit. On the other hand, those points can also be used to book a Singapore to Zürich flight in their brand new first class, which would ordinarily cost $6,000+. one-way

An even more pronounced example: with just 30,000 points (or what would be $300 in cash-back), transferred to United, you can book HKG-SYD (a 13h trip) in business class, which would ordinarily cost $3,000+ one-way.

Re: Launch HN: Brex (YC W17) – Corporate Credit Card for Startups

#114

Post by hdubugras » Fri, Jun 29, 2018, 6:50 PM UTC

ckdarby wrote: post #112

Kind of shocked on raising the funds, I guess you have had good adoption on the platform? Maybe I am missing the point of what is being solved? Access to business credit is a really straightforward process, you can incorporate and with ZERO assets or revenue have a 5k credit card issued on the spot. In terms of managing credit cards within a company and the other features you're listing out they looked already solved…

Hey! Indeed we do have very good traction. But the fact that you can get business credit with zero assets or revenue is true if you're wiling to personally guarantee the card, because then it's just like getting a personal card but with your business name on it. I as an immigrant without a lot of personal credit history was unable to get a card when starting Brex. Today, we raised over $57m and we're still unable to get cards from banks. We're the first card to actually underwrite startups and give them a card with high limits and no personal guarantee.

Re: Launch HN: Brex (YC W17) – Corporate Credit Card for Startups

#115

Post by StavrosK » Fri, Jun 29, 2018, 6:53 PM UTC

kenneth wrote: post #113

StavrosK wrote: post #110

Earlier quoted context omitted.

How do you figure? As far as I know, you can't buy points with money, so it's $XX,XXX worth of flights.

Take the Chase Freedom Unlimited card, for example. It ears 1.5% cash-back in the form of points. Those same points can also be transferred to airlines (as long as you have their premium card) If you have 115,000 points, you can use them towards a $1,150 cash credit. On the other hand, those points can also be used to book a Singapore to Zürich flight in their brand new first class, which would ordinarily cost $6,000…

Oh, I see, you mean credit cards. I was thinking miles accrued from flights and was confused, thanks.

Re: Launch HN: Brex (YC W17) – Corporate Credit Card for Startups

#116

Post by hakfoo » Sat, Jun 30, 2018, 6:37 AM UTC

kenneth wrote: post #91

cperciva wrote: post #50

Earlier quoted context omitted.

we're building a new rewards program that will launch later this year, would love to hear your thoughts on what a great rewards program looks like for you. Honestly, dollars are fungible. For less sophisticated customers, points which can be redeemed specifically for travel are attractive because people anticipate getting better deals than they end up with; but I'd be disappointed if that works well for the audience…

I disagree. I have no interest in fungible dollars when the alternative is miles which can be used to get outsized return on experiences. I have plenty of ways of making money, and trying to optimize for a %age of cash back is not particularly interesting. Miles and points on the other hand can be used to get experiences that would otherwise be completely out of question due to their price. It adds something meaningf…

I guess I go exactly the opposite. Theoretically, you can get more value out of carefully playing a narrow rewards program, but a simple cash incentive has its own benefits. Notably, you're not stuck within the confines of the available rewards, and it's hard to devalue a dollar balance as easily as announcing that a free flight is now twice as many miles.

I cashed out a cash-rewards card recently, and bought a work chair with the proceeds; I don't think most miles/points plans would have let me get that.

Re: Launch HN: Brex (YC W17) – Corporate Credit Card for Startups

#117

Post by tixocloud » Sat, Jun 30, 2018, 9:07 AM UTC

mcherm wrote: post #107

tixocloud wrote: post #105

Earlier quoted context omitted.

I'm in analytics for several banks (including credit cards) and have always thought that one of the key competitive edges is managing risk so in my mind, it'd be a trade secret ;) But also curious about the answer to the question :)

> in my mind, it'd be a trade secret Yes, I will be completely unsurprised if that's the answer, and I don't mean to pry. But I'm also aware that there are benefits to open conversation and to the extent that I'm allowed to, I am happy to engage in such!

Agreed. Happy to engage as well.

What part of small business credit cards are you in?

Re: Launch HN: Brex (YC W17) – Corporate Credit Card for Startups

#118

Post by seaturtles » Sun, Jul 01, 2018, 5:35 AM UTC

hdubugras wrote: post #27

claar wrote: post #25

About the signup flow: I'm a founder searching for a corporate credit card, so naturally I'm comparing benefits with other cards. The rewards page boasts "Brex gives you valuable rewards equivalent to 500,000+ points on competitor card programs.", but gives no specific information about these rewards without signing up. This felt deceptive / scammy to me, and I instinctively closed the page. Later I found the rewards…

Today with Brex if you signup and have Brex be your primary card you get: $5k of AWS, $105 in Doordash and $105 on Instacart. Although we're building a new rewards program that will launch later this year, would love to hear your thoughts on what a great rewards program looks like for you. And thnaks on the feedback on the clarity around the rewards - will improve!

Is this still going on? I just discovered this post today and signed up, but didn't see any mention of the AWS/Doordash/Instacart benefits.

Re: Launch HN: Brex (YC W17) – Corporate Credit Card for Startups

#119

Post by seaturtles » Sun, Jul 01, 2018, 5:39 AM UTC

kenneth wrote: post #91

cperciva wrote: post #50

Earlier quoted context omitted.

we're building a new rewards program that will launch later this year, would love to hear your thoughts on what a great rewards program looks like for you. Honestly, dollars are fungible. For less sophisticated customers, points which can be redeemed specifically for travel are attractive because people anticipate getting better deals than they end up with; but I'd be disappointed if that works well for the audience…

I disagree. I have no interest in fungible dollars when the alternative is miles which can be used to get outsized return on experiences. I have plenty of ways of making money, and trying to optimize for a %age of cash back is not particularly interesting. Miles and points on the other hand can be used to get experiences that would otherwise be completely out of question due to their price. It adds something meaningf…

THIS +1000000000000

Don't care about cashback cards under 5%. Earning miles and points is much more meaningful and attractive.

Re: Launch HN: Brex (YC W17) – Corporate Credit Card for Startups

#120

Post by ronakvora » Mon, Jul 02, 2018, 6:38 PM UTC

This may be prying and off topic, so sorry if it is, but how do you guys plan on making money? From the $5/user/mo fee? Or does Visa hand over a piece of the 2.x% transaction fee?