Ask any employee and they’ll tell you one of their least favorite things to do is file expenses. And for companies, the process of managing corporate expenses is one of their biggest challenges.
Corporate credit cards help ease that pain, so it’s no surprise that the competition among startups in the space is heating up day by day.
One of the fastest growing players in the space raise up, a fintech company that earlier this year secured a $150 million loan facility with Goldman Sachs $30 million Series B raised At the end of December 2020.
Today, the New York-based company is announcing a new feature it says will give its corporate customers more control and flexibility over how they use their cards. Notably, Ramp said it now offers its customers the option to approve or block merchants on cards it offers to its employees.
In an exclusive interview with Nerdshala, Erik Glyman, co-founder and CEO of Ramp Said that this step has been taken in response to the demand of the customers.
“It was one of our most requested features, especially from companies with over 100 employees,” he told Nerdshala. “He said, ‘I can block a spam call. It’s crazy I can’t do that with my credit card.’ “
With the new feature, Ramp says companies have “complete control” of how their employees use their corporate cards down to the vendor level. This allows companies to specifically outline what employees can spend with, which vendors can charge which cards, and how much they can charge.
So, why is this a big deal? Glyman said this means that merchant-specific cards greatly reduce the risk from a stolen or compromised card. It also helps prevent employees from inflating expenses or filing false reimbursement claims.
“It gives security and control back to financial teams in a way that has never been possible before,” he said.
Glyman said it also helps companies in their quest to save money by using corporate credit cards.
“For example, they may restrict spending to businesses or companies that have discounted or preferential pricing,” he said. “It’s another layer of enforcement for the finance teams.”
According to Glyman, understanding and clustering unique identifiers to be able to identify traders was “technically complex”, so the process was not easy.
For its part, Ramp counts “thousands” of businesses as customers, as well as thousands of individuals using its cards.
“We’re powering 9 figures monthly and over $1 billion in spending,” Glyman said.
The company must be doing something right.
Since extending the credit line earlier this year, Ramp has seen steady growth, with volume more than doubling in the past three months.
While Glyman declined to divulge specific revenue figures, he said the ramp increased by more than 6,000% in 2020, compared to the previous year and has grown by more than 1,000 in the past 12 months. The clients are usually fast growing startups as well as small businesses. Some of its more well-known startup clients include RO, Sleep Eight, ClickUp, Marketa, Candidate, Better, Truebill, and Nugs.
While Ramp makes money mostly from interchange fees, Glyman said the two-year-old startup thinks of itself as a SaaS operator.
“Our long-term strategy is to develop great software,” he said.