Ramp adds merchant ‘blocking’ to corporate credit card – TechCrunch
Ask any employee and they’ll tell you that one of their least favorite things is reporting expenses. And for businesses, the business expense management process is one of their biggest challenges.
Business credit cards help ease this pain, so it’s no surprise that competition among startups in the industry is increasing day by day.
One of the fastest growing players in the space is Ramp, a fintech firm which earlier this year secured a $ 150 million credit facility with Goldman Sachs after raised a $ 30 million Series B end of December 2020.
Today, the New York-based company is announcing a new feature that it says will give its business customers greater control and flexibility over how their cards are used. Specifically, Ramp said it now offers its customers the ability to approve or block merchants on the cards they offer to their employees.
In an exclusive interview with TechCrunch, Ramp co-founder and CEO Eric Glyman said the move was in response to customer demand.
âThis was one of our most requested features, especially by companies with more than 100 employees,â he told TechCrunch. âThey said, ‘I can block a spam call. It’s crazy that I can’t do this with my credit card. ‘ “
With the new functionality, Ramp says businesses “have full control” over how their employees use their corporate cards, down to the vendor level. It allows businesses to precisely define who employees can spend with, which vendors can be billed on which card, and how much they can charge.
So why is it so bad? Glyman said this means that merchant specific cards significantly reduce the risk of cards being stolen or compromised. It also helps prevent employees from inflating expenses or filing bogus claims.
âIt gives back security and control to finance teams in a way that was never possible before,â he said.
It also helps businesses in their quest to save money by using corporate credit cards in the first place, Glyman added.
âFor example, they can restrict spending to businesses or businesses with which they have discounts or preferential prices,â he said. âIt’s another level of application for finance teams. “
The process was not easy because understanding and grouping unique identifiers to be able to identify traders was “technically complex,” according to Glyman.
For its part, Ramp has âthousandsâ of businesses as customers, with tens of thousands of individuals using its cards.
âWe generate 9 figures per month and over $ 1 billion in expenses,â Glyman said.
The business has to do something right.
Since increasing its line of credit earlier this year, Ramp has seen continued growth, further doubling its volume in the past three months.
While Glyman declined to reveal specific revenue figures, he said Ramp grew by more than 6,000% in 2020 from the previous year and increased by more than 1,000 in the past 12 months. Clients are typically fast growing startups as well as small businesses. Some of its most well-known startups include Ro, Sleep Eight, ClickUp, Marqeta, Candid, Better, Truebill, and Nuggs.
While Ramp makes money primarily through interchange fees, Glyman said the two-year-old startup sees itself as a SaaS operator.
âOur long term strategy to develop great software,â he said.