Business Operations Business Models

How Does Expensify Make Money (Business and Revenue Model)

The Expensify business model

Expensify logo
Here’s what you should know:
  • What is Expensify, and how does Expensify work?
  • How does Expensify make money?
  • Subscription Revenue
  • Interchange Fees (Expensify Card)
  • Expensify profit and revenue
  • What is the Expensify business and revenue model?
  • Expensify funding, net worth, and market cap
  • Expensify subsidiaries, acquisitions, and exits

How does Expensify make money and how is it free it use? Well, here is a complete, in depth, breakdown of their two (2) revenue streams and the different products and services they offer, as well as the Expensify business and revenue model, how much Expensify makes per year, and how Expensify works.

What is Expensify, and how does Expensify work?

Expensify is a financial services company that provides an expense management service for businesses, individuals, and the self-employed.

Founded in 2008 by David Barrett and Witold Stankiewicz, Expensify began trading on the NASDAQ on April 12, 1996, under the ticker symbol “EXFY”.

Since that time, Expensify now has more than 11 million members and has processed and automated over 1.2 billion expense transactions on its platform.

So, how does Expensify work? To use Expensify, you can start by downloading their app on the Apple App Store or Google Play store; or visiting their website and creating an account.

Once signed up, you can begin tracking your expenses by connecting Expensify to your bank account(s), using Expensify to take pictures of your receipts, and also tracking your expenses a by applying for an Expensify Card.

Some of Expensify’s competitors include Truebill, Mint, Ramp, QuickBooks, and other expense tracking services.

Expensify App in Apple App Store | Expensify Business Model | How Does Expensify Make Money? | How Does Expensify Work?
Source: Apple App Store | Expensify

How does Expensify make money?

According to Expensify, Expensify has more than 11 million members using its expense managing software. So how does Expensify make money off of all these members?

Below is a breakdown of how much money Expensify makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 2 ways how Expensify makes money in 2022

Expensify has a revenue model that makes money in two (2) ways; through subscription revenue and interchange fees from their Expensify Card.

#1. Subscription Revenue

Expensify makes most of its money from the two (2) expense tracking subscription card services they offer to its members.

These two (2) card services can be used by both businesses and self-employed individuals. They are Collect, Control, Track, and Submit.

And although Expensify does offer free card expense tracking for both, they have their limitations. Which is why these paid plans offer additional perks such as accounting integrations, expense approval, custom reporting, and more – depending on the plan. You can see the pricing below or check it out in full here.

How much does an Expensify subscription cost? (Expensify pricing)

  • For individuals & self-employed: $4.99 per month if more than 25 SmartScans per month
  • For businesses: $5 to $36 per month per user depending on the plan, bundled/unbundled, and annual/monthly

Note: Of Expensify’s 11+ million members on the platform, more than 711,000+ are paying members.

#2. Interchange Fees (Expensify Card)

Expensify also makes money off of the interchange fees they receive from their Expensify credit card that is issued to members who apply and qualify.

How does Expensify make money from interchange fees? Expensify makes money whenever an Expensify cardholder swipes their Visa issued credit card.

When this happens, Visa charges the merchant an interchange fee between 1.15% + $0.05 to 2.40% + $0.10 of the charge amount. From that, Visa gives a percentage of its interchange fee revenue to Expensify. Although it’s unclear what percentage Expensify receives from Visa.

Expensify Credit Card | Expensify Business Model | How Does Expensify Make Money | How Does Expensify Work
Source: Expensify

Expensify profit and revenue

In 2021, Expensify reported $142.83 million USD in revenue.

Note: Because Expensify, Inc. is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of Expensify’s publicly released financial reports, including annual reports, through Expensify’s investor section on their website.

What is the Expensify business and revenue model?

Expensify makes money through a few revenue models that they combine within their company, they are:

  • Freemium (upselling) business model
  • Subscription business model
  • Fee for service (FFS) business model
  • Business to business (B2B) business model
  • B2B2C (partnerships) business model

Expensify funding, net worth, and market cap

According to Expensify’s Crunchbase profile, Expensify has raised $138.2 million over 9 rounds and has a market cap of $1.17 billion as of September 2022.

Expensify subsidiaries, acquisitions, and exits

To date, Expensify has not made any acquisitions, investments, or exits.