Navan's BYOC(ard) platform

Navan's latest move to allow you to BYOC(ard) to the Navan platform for their software without switching cards is ingenious. Because as we've seen, it's really all about data and making it easier for big companies to give it to you is a smart move.

Even from a financial point of view, this makes sense. The business of interchange tough, and Navan is basically admitting that it barely makes sense standalone.

As I’ve said before, I don't get the unit economics for business card startups, especially in high interest environments:

• + 240 bps IC + incentives

• - 150 bps rewards

• - 40 bps cost of capital

• - 20 bps losses

• - 20 bps processor fees

• - 20 bps network

• = -10bps Contribution

Hedging your low margin volatile interchange business with the stability of big company fees (and maybe subscriptions) can work. But ultimately, the real benefit will be all the data that feeds its AI. As we said back at Sift, the goal is "no rules, just data" & the potential to replace travel policy rules with intuitive AI or help centers with chatbots is where the real value is (by the way, Ava [from Navan] - great name).