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Business Operations Business Models

How Does Ramp Make Money (Business and Revenue Model)

The Ramp business model

Ramp logo
Here’s what you should know:
  • What is Ramp, and how does Ramp work?
  • How does Ramp make money?
  • Interchange Fees (Ramp Visa Cards)
  • Ramp funding, net worth, and valuation
  • Ramp profit and revenue
  • What is the Ramp business and revenue model?
  • Ramp subsidiaries, acquisitions, and exits

How does Ramp make money and how is it free to use? Well, here is a complete, in depth, breakdown of their main revenue stream and services they offer, as well as the Ramp business and revenue model, how much Ramp makes per year, and how Ramp works.

What is Ramp, and how does Ramp work?

Ramp is a finance automation platform that provides businesses with finance tools like corporate cards, expense management, bill payments, and accounting software.

Founded in 2019 by Eric Glyman, Gene Lee, and Karim Atiyeh, Ramp now has more than 10,000+ businesses using its service to simplify their expenses.

So, how does Ramp work? To use Ramp, visit their website and enter in your email address to get started.

After that, simply answer some of Ramp’s questions about your business to see if you qualify for an account. If approved, you can then choose from the various Ramp financial products you’re interested in.

Some of Ramp’s competitors include Brex, Divvy, Expensify, and other companies that offer finance tools for businesses.

How does Ramp make money?

According to Ramp, Ramp has more than 10,000+ businesses using its finance software. So how does Ramp make money off of all these businesses?

Below is a breakdown of how much money Ramp makes and its revenue model. Including their main revenue stream and how much they charge for their services.

Here is how Ramp makes money in 2022

Ramp has a revenue model that makes money in just one (1) way; interchange fees recieved from their Ramp business credit card.

#1. Interchange Fees (Ramp Visa Cards)

At this time, Ramp makes all of its money off of the interchange fees they receive from their Ramp business credit cards that are issued to qualifying business customers.

How does Ramp make money from interchange fees? Ramp makes money whenever a Ramp 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 Ramp. Although it’s unclear what percentage Ramp receives from Visa.

Ramp Visa business credit card | Ramp Business Model | How Does Ramp Make Money | How Does Ramp Work
Source: Ramp

Ramp funding, net worth, and valuation

According to Ramp’s Crunchbase profile, Ramp has raised $1.4 billion over 8 rounds and has a valuation of $8.1 billion as of March 2022.

Ramp profit and revenue

Ramp has not released any official reports in regard to company earnings.

Note: Because Ramp is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the Ramp business and revenue model?

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

  • Fee for service (FFS) business model
  • Business to business (B2B) business model
  • B2B2C (partnerships) business model
  • Mergers and acquisitions (M&A) business model

Ramp subsidiaries, acquisitions, and exits

To date, Ramp has made a total of 1 acquisition, 5 investments, and 1 lead investment.