How does Ramp make money? It is a question on the minds of startup founders, venture capitalists, and corporate finance leaders watching the fintech space evolve at breakneck speed.
Ramp, the New York-based startup, has quickly positioned itself as one of the most formidable players in the business finance ecosystem. Its growth has been fuelled by its bold promise to help companies spend less, not just spend smarter.
Unlike most SaaS or traditional finance platforms, Ramp offers its tools completely free of charge. From automated expense reporting to real-time spend insights, the platform has become a go-to for fast-growing US companies looking to save time and reduce waste.
But behind the sleek dashboard and user-friendly interface is a finely tuned revenue engine that operates very differently from what most entrepreneurs are used to.
This article breaks down Ramp’s business model in detail. You will learn how Ramp makes money without charging subscription fees, the strategy behind its no-fee approach, and what its competitors are doing differently.
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Key Takeaways
- While not yet profitable, Ramp has achieved a $13 billion valuation by prioritising scale, automation, and long-term monetisation strategies.
- Ramp makes money through interchange fees on corporate card transactions, not subscriptions, using a fintech revenue model focused on usage over access.
- Its SaaS and fintech hybrid business model offers free B2B expense management software to drive adoption and monetise transaction volume.
- Ramp’s strategic growth is fuelled by viral product adoption, financial infrastructure partnerships, and a no-fee philosophy that lowers friction.
What is Ramp?
Ramp is a corporate card startup based in New York that has quickly become one of the most talked-about fintech companies in the United States.
Founded in 2019 by Eric Glyman and Karim Atiyeh, the company was created to solve a simple but deeply entrenched problem – how businesses spend money inefficiently.
With an emphasis on automation, transparency, and savings, Ramp positioned itself not just as another card issuer, but as a software-first financial partner for scaling companies.
The core of the Ramp business model lies in providing free, intuitive B2B expense management software that helps finance teams streamline everything from employee reimbursements to bill payments and spend controls.
Unlike traditional finance tools that operate in silos, Ramp integrates with accounting platforms like QuickBooks, NetSuite, and Xero.
It also connects with communication tools such as Slack and Gmail, creating a seamless workflow for finance operations. These integrations are part of what has made Ramp attractive to startups, mid-market firms, and larger enterprises across the US.
Ramp’s valuation has reflected this traction. In just a few years, the company has raised more than 1.7 billion dollars from top-tier investors like Founders Fund, Stripe, and Goldman Sachs.
As of its last reported funding round, Ramp was valued at over 7 billion dollars. That figure is not just a testament to investor confidence, it also signals a shift in how the market views the value of automation-first financial platforms.
Entrepreneurs exploring their own funding journeys or considering new business models can benefit from learning how Ramp built a high-valuation product without charging users a single dollar.
How Does Ramp Make Money?
Ramp operates on a fintech model that flips traditional SaaS revenue on its head. While most platforms charge users for access, Ramp generates income without billing its customers a cent.
So, how does Ramp make money? The answer lies in transaction volume, embedded infrastructure, and financial partnerships that reward scale, not pricing.
Interchange Fees from Card Transactions
The core of the Ramp revenue model is built on interchange fees. Every time a customer swipes their Ramp corporate card, the merchant pays a fee to the payment network, usually between 1.5 to 2.5 per cent of the transaction amount.
Ramp receives a portion of this fee through its partnership with issuing banks like Column Bank and networks like Visa.
Because Ramp targets businesses rather than individuals, the average transaction size is significantly higher than consumer-level fintech platforms.
That means even a small percentage can generate meaningful revenue. More spending on Ramp cards translates directly into more income for the company, without ever charging the user.
Partnerships with Financial Infrastructure Providers
Ramp also benefits from strategic relationships with payment processors, banking-as-a-service platforms, and other fintech enablers. These partnerships allow Ramp to keep its infrastructure lean while still offering enterprise-grade services.
In return, Ramp likely earns a share of the financial value created through these backend systems, whether through negotiated rates, revenue-sharing models, or incentives tied to customer acquisition and card volume.
This partnership-driven model is what makes the Ramp business model both scalable and capital-efficient. The platform does not have to own or manage the full financial stack, which allows it to move faster and invest more in product development.
Software as a Free Acquisition Engine
Unlike traditional SaaS products that monetise through tiered plans or per-seat pricing, Ramp gives away its software to every user.
Expense automation, receipt tracking, approval workflows, and real-time analytics are all included at no cost. These tools are not loss leaders, they are the engine that drives card usage.
By delivering high-value software for free, Ramp attracts finance leaders, operations managers, and founders who are actively managing spend.
Once a team is onboarded, it naturally starts using Ramp cards to take advantage of the automation. That usage is what generates revenue. In this way, Ramp monetises actions, not access.
Ramp Business Model
The Ramp business model blends the best of two worlds: fintech infrastructure and software-as-a-service. But unlike most SaaS companies that rely on subscriptions or fintech platforms that depend on lending or fees, Ramp takes a different path.
It is a SaaS and fintech hybrid business model built for long-term scalability through usage, not licensing.
Ramp provides high-value spend management software for free, using it as a lever to drive card adoption. Once users begin transacting, Ramp monetises through backend financial mechanics like interchange fees and partnerships with financial infrastructure providers.
This approach aligns perfectly with modern fintech monetisation strategies that prioritise user experience and automation over traditional paywalls.
Product-Led Growth Meets Embedded Finance
Ramp’s growth engine is not marketing, it is the product itself. From day one, users get access to powerful features like real-time expense tracking, automated approvals, and vendor savings insights.
These tools solve real problems for finance teams and create a natural path to frequent card usage.
The more a company uses Ramp to manage expenses, the more likely it is to adopt the Ramp card as its default payment method. That usage fuels the revenue engine without the need for upsells or customer service-heavy enterprise sales.
Zero-Fee Access Builds Trust and Reduces Friction
One of the most important decisions Ramp made early on was to avoid charging users. No subscription fees. No implementation costs. No tiered plans. Just a clean, transparent platform.
This has made it easier for finance teams to adopt Ramp quickly, often without the lengthy procurement cycles that come with paid SaaS products.
By removing cost as a barrier, Ramp eliminates friction and builds goodwill. This approach is part of why it has grown to serve thousands of US companies in such a short span.
Backed by Scalable Financial Infrastructure
Ramp partners with financial institutions and payments providers to manage card issuing, transaction processing, and compliance.
Instead of building this infrastructure from scratch, Ramp leverages existing systems, allowing it to stay nimble and focused on improving the user experience.
These partnerships also open up revenue-sharing opportunities, helping Ramp grow its income without relying on direct customer charges.
Ramp Business Model Summary Table
| Component | Description | Revenue Driver |
|---|---|---|
| Free B2B Expense Software | Spend tracking, automation, receipt matching, bill pay, and reporting | Drives adoption and card usage |
| Corporate Card Transactions | Visa-powered cards issued via banking partners | Interchange fee revenue |
| Infrastructure Partnerships | Integrations with payment processors and issuing banks | Revenue sharing and backend incentives |
| Product-Led Growth | Viral loops through team-wide usage and integrations | Scalable user base without high CAC |
| No Subscription Fees | Entire platform is free to use | Builds trust, reduces churn |
Ramp Primary Revenue Streams
Ramp has designed a revenue engine that grows in step with the financial activity of its users. It does not rely on subscription pricing or service fees.
Instead, the Ramp revenue model is built around monetising financial behaviour, specifically, how much businesses spend using the Ramp card.
This section breaks down the three main ways Ramp earns money.
Interchange Fee Revenue
At the heart of how Ramp makes money is interchange fee revenue. Every time a customer makes a purchase with a Ramp corporate card, a small percentage of that transaction is paid by the merchant to the payment network.
This fee typically ranges from 1.5 to 2.5 per cent, depending on the merchant category and transaction type.
Ramp receives a cut of this interchange through its partnerships with Visa and its issuing bank, Column Bank.
Since Ramp targets mid-sized businesses and high-growth companies, the average transaction volume per customer is substantial. This makes interchange not just a viable revenue stream, but a highly scalable one.
The bigger the spend, the greater the revenue. This is why Ramp’s growth strategy is centred around getting companies to route more of their day-to-day expenses through its platform.
Financial Infrastructure Partnerships
Ramp does not build and maintain its own payment rails or banking infrastructure. Instead, it partners with established financial providers, allowing it to stay lean while offering bank-grade services.
These backend relationships go beyond operational support. They are also tied to revenue-sharing agreements and cost-saving structures.
Through these partnerships, Ramp can benefit from incentives related to transaction volume, card issuance, and customer acquisition.
This is a common structure in fintech monetisation strategies where software companies partner with regulated institutions and monetise through shared financial outcomes.
This model allows Ramp to focus its energy on product innovation and customer experience, while still earning revenue from the underlying financial infrastructure.
Future Monetisation Through Value-Added Features
Today, Ramp’s entire platform is free to use. But that does not mean monetisation ends with interchange. The company already offers advanced tools like vendor cost savings, procurement approvals, and spend forecasting, all without charge.
In the future, Ramp could layer in optional premium features for large teams or enterprise accounts. This could include deeper analytics, advanced integrations, or compliance automation.
While this is not currently a major part of the Ramp revenue model, it is a potential lever the company could pull as it scales.
Other fintech companies have followed a similar path: offer high-value tools for free, gain trust and adoption, then monetise through targeted enterprise services.
If Ramp chooses to do the same, it will likely retain its core no-fee philosophy while expanding its revenue footprint among high-volume users.
Ramp’s Customer Acquisition and Growth Strategy
Ramp’s rapid rise as a corporate card startup is not just about its product, it is also about how effectively it acquires and retains customers.
The company has built a scalable, product-led go-to-market engine that combines seamless onboarding, zero pricing friction, and smart automation to drive adoption.
The entire Ramp business model is built on making financial tools easy to use, free to access, and impossible to ignore once integrated into a team’s workflow.
Free Software as the Entry Point
Ramp’s most powerful growth lever is its free software. The platform includes tools that most finance teams would expect to pay for: automated expense tracking, receipt scanning, policy enforcement, and real-time reporting.
These tools create immediate value, especially for lean teams looking to reduce manual processes.
Because there are no setup fees or subscriptions, businesses of all sizes, from early-stage startups to established mid-market firms, can adopt Ramp without budget approvals or long procurement cycles.
This low-friction approach is a key part of the Ramp customer acquisition strategy.
Viral Growth Through Team Adoption
Ramp cards are issued at the employee level, not just the company level. This creates a natural viral loop. Once the finance team sets up the platform, individual employees start using their own cards for travel, subscriptions, and vendor payments.
Every swipe brings more transaction volume—and more data—into the system.
As more employees engage with the platform, Ramp becomes embedded in the company’s day-to-day financial operations. This stickiness improves retention and increases the lifetime value of each account.
Cashback Incentives and Cost-Saving Features
Ramp offers 1.5 per cent cashback on every transaction. While simple, this incentive directly supports the brand’s mission to help businesses spend less.
It is also a smart retention tool, as customers benefit financially by continuing to use the Ramp card over competitors.
What sets Ramp apart even more is its cost-saving features. For example, the platform alerts users when they are overpaying for software subscriptions or if a vendor is charging more than usual.
These insights are built into the platform’s B2B expense management software, making Ramp not just a card provider, but a cost optimisation tool.
Speed and Integration as Competitive Advantages
Ramp’s onboarding process is digital, fast, and integration-ready. The platform connects with widely used systems like QuickBooks, Xero, Slack, and Google Workspace.
This makes it easier for finance teams to plug Ramp into their existing processes without needing to change how they work.
This ability to fit into the tools businesses already use is a major differentiator in the crowded corporate card startup market. Ramp reduces the friction of switching platforms and makes adoption seamless.
Is Ramp Profitable?
As of early 2025, Ramp has not yet achieved profitability. However, this is a strategic choice rather than a shortfall.
The company’s focus has been on scaling its user base and transaction volume, laying a robust foundation for long-term revenue growth.
Ramp’s Valuation and Funding Milestones
In April 2024, Ramp secured a $150 million Series D-2 funding round, co-led by Khosla Ventures and Founders Fund, elevating its valuation to $7.65 billion.
This marked a recovery from its previous valuation of $5.8 billion in August 2023. By March 2025, Ramp’s valuation surged to $13 billion, reflecting investor confidence in its growth trajectory and business model.
Revenue Growth and Business Model
Ramp’s revenue model primarily hinges on interchange fees from card transactions. As businesses increase their spending through Ramp’s platform, the company benefits from a proportional rise in revenue.
By mid-2023, Ramp had surpassed $300 million in annualised revenue, demonstrating significant growth from the $100 million mark achieved in early 2022.
This growth underscores the scalability of Ramp’s revenue model, which aligns with usage rather than traditional subscription fees.
The company’s emphasis on providing free, high-value software tools encourages widespread adoption, subsequently driving transaction volume and revenue.
Strategic Investments and AI Integration
Ramp has strategically invested in artificial intelligence to enhance its platform’s capabilities. These AI-driven features aim to automate financial processes, provide deeper spending insights, and improve decision-making for businesses.
Such innovations not only add value for existing customers but also attract new users seeking efficient financial management solutions.
Path to Profitability
While Ramp is not currently profitable, its strategic investments and scalable revenue model position it well for future profitability.
The company’s approach of prioritising growth and platform enhancement over immediate profits is a common strategy among fintech startups aiming for long-term success.
As Ramp continues to expand its customer base and transaction volume, it is poised to achieve profitability in the foreseeable future.
Ramp vs Competitors
Ramp operates in a competitive space filled with aggressive players targeting the same core market: fast-growing businesses that want smarter control over their finances.
The main Ramp competitors include Brex, Expensify, and Divvy. While all of these platforms offer corporate cards and expense tools, their business models, pricing structures, and product philosophies vary significantly.
What sets Ramp apart is its choice to give away its software for free while monetising backend activity. Other companies in the space have taken different routes, some rely on paid subscriptions, others on extending credit.
For founders and finance leaders evaluating their options, understanding these differences is critical.
Let’s take a closer look at how Ramp compares.
Ramp vs Brex: Free Automation vs Subscription Bundles
Brex is often seen as Ramp’s closest rival. Both are digital-first platforms that provide corporate cards and expense management tools, but they diverge sharply when it comes to how they make money.
Brex charges users for access through bundled software subscriptions. While its platform includes credit, spend controls, and global payments, companies typically pay a monthly fee based on features or usage tiers.
Brex also positions itself heavily in the startup ecosystem, offering financial products for early-stage companies and venture-backed teams.
Ramp, in contrast, does not charge users anything. The Ramp business model is built on interchange fees alone. This approach eliminates financial friction and allows finance teams to adopt Ramp without cost considerations.
The automation tools come fully included- no add-ons, no gated functionality.
From a usability standpoint, Ramp often appeals to mid-market and growth-stage companies that need operational efficiency and tight financial control, without additional cost layers.
Ramp vs Expensify: Full Platform vs Point Solution
Expensify is a long-established player in the expense management category. It is known for its mobile-first app, receipt scanning features, and workflow approvals.
Unlike Ramp, Expensify operates like a traditional SaaS company. Users pay per employee or based on the plan selected.
While Expensify focuses primarily on employee reimbursements and manual expense reports, Ramp offers an all-in-one solution.
It includes corporate cards, vendor payment automation, spend forecasting, and accounting integrations- all under one roof and free to use.
This makes Ramp more appealing to companies that want to centralise financial operations rather than stitch together multiple tools.
For businesses managing complex spend categories, Ramp is a more complete system that evolves with team needs.
Ramp vs Divvy: Transaction-Driven vs Credit-Centric
Divvy, which was acquired by Bill.com, combines corporate cards with expense management software. Like Ramp, it offers real-time tracking and spend limits. But its primary monetisation comes from issuing credit.
Divvy underwrites companies and extends them lines of credit, earning revenue from interest and repayment terms, alongside interchange.
Ramp deliberately avoids credit underwriting. Instead, it issues cards based on a company’s available cash balance and real-time financial data.
This decision allows Ramp to maintain a low-risk profile while keeping spend management grounded in real-time liquidity, not borrowed funds.
For CFOs or finance teams looking to avoid debt exposure or complex credit arrangements, Ramp offers a cleaner, usage-based alternative.
Lessons for Fintech and SaaS Founders From Ramp
Ramp’s rise offers more than just a case study in financial technology, it provides a blueprint for how modern founders can rethink pricing, product strategy, and revenue generation.
For those building in the fintech or SaaS space, there are powerful takeaways in how Ramp structured its growth and monetisation engine.
Understanding how fintech companies make money in today’s market requires moving beyond legacy models of subscriptions and licensing.
Ramp proves that there are other paths to scale- paths that do not start with charging the customer upfront.
Monetise Usage, Not Access
The traditional SaaS model is built on access: charge per user, per seat, or per feature. Ramp flips that entirely.
Instead of monetising access, it monetises behaviour. Every swipe of a Ramp card creates value for the business and revenue for the platform.
This approach lowers friction and accelerates adoption. For SaaS and fintech founders, it is a reminder that not every valuable product needs to carry a price tag on the front end.
A usage-based revenue strategy can still deliver meaningful upside, especially when tied to financial transactions or backend partnerships.
Free Tools Can Be Your Growth Engine
Ramp’s software is free because it functions as a growth lever. By offering powerful spend management tools at no cost, the company creates immediate value that leads directly to product usage.
Once users are engaged, the platform earns money through interchange and financial infrastructure.
This type of SaaS and fintech hybrid business model can be especially effective for startups in crowded markets.
Founders can use free tools to enter the market, win customer trust, and grow organically, without needing to compete on advertising spend alone.
Build With Automation and Integration in Mind
Modern businesses expect their tools to connect and automate. Ramp’s success is partly due to how well it integrates with accounting platforms, communication tools, and banking infrastructure.
Finance leaders adopt Ramp because it saves time and fits seamlessly into existing workflows.
Founders should consider this when building fintech or SaaS products. Convenience, automation, and interoperability are no longer differentiators, they are expectations. Products that respect a customer’s time will outperform those that require more of it.
Think Infrastructure, Not Just Interface
Ramp’s backend partnerships are part of what makes its business model scalable. By working with banks and financial service providers, it avoids having to build its own infrastructure from scratch.
This allows the company to stay focused on product quality and user experience.
For fintech founders, especially, this is a powerful lesson. You do not have to own the rails to create value, you just need to own the experience.
Strategic partnerships can unlock monetisation without the heavy cost of building core infrastructure internally.
Conclusion
Ramp’s success is about rethinking how value is delivered and monetised in fintech. By offering powerful financial automation tools for free and generating revenue through smart infrastructure partnerships and interchange, Ramp shows that it is possible to scale without charging the customer upfront.
This no-fee, product-led model lowers barriers to adoption, drives long-term engagement, and aligns revenue with real-world usage.
For fintech and SaaS founders, it is a signal that usage-based growth, paired with automation and efficiency, can unlock massive opportunity in even the most crowded markets.
If you are building or scaling your own business, take a page from Ramp’s playbook. Focus on delivering value early, remove friction for your users, and design a model that monetises behaviour rather than access.
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Frequently Asked Questions: How Does Ramp Make Money?
How does Ramp make money?
Ramp primarily generates revenue through interchange fees. Every time a customer uses a Ramp corporate card, the merchant pays an interchange fee, a portion of which goes to Ramp.
This model allows Ramp to offer its software tools for free while earning revenue from card usage.
What is Ramp business model?
Ramp operates on a SaaS and fintech hybrid business model. While it provides software-as-a-service tools like expense management and bill payments, its primary revenue comes from financial transactions, specifically interchange fees.
This approach aligns with modern fintech monetisation strategies, focusing on usage-based revenue rather than traditional subscriptions.
Is Ramp profitable?
As of early 2025, Ramp is not yet profitable by choice. The company is reinvesting its revenue to scale operations and enhance product offerings.
According to CEO Eric Glyman, Ramp could achieve profitability quickly if desired, but the current focus is on long-term growth and innovation.
What is Ramp’s current valuation?
In March 2025, Ramp’s valuation nearly doubled to $13 billion following a $150 million secondary share sale. This significant increase reflects investor confidence in Ramp’s growth trajectory and business model.
Does Ramp offer any paid services?
Yes, Ramp offers Ramp Plus, a subscription-based service that provides advanced features beyond the standard free offerings.
This includes enhanced reporting, integrations, and dedicated support, contributing to Ramp’s revenue model alongside interchange fees.
How does Ramp’s revenue model compare to other fintech companies?
Ramp’s revenue model focuses on interchange fee revenue, similar to other fintech companies that earn from transaction-based fees.
However, unlike some competitors that rely heavily on subscriptions or lending, Ramp emphasises free software tools to drive card usage, aligning with modern fintech monetisation strategies.
Who are Ramp’s main competitors?
Ramp’s primary competitors include Brex, Expensify, and Divvy. While all offer corporate cards and expense management solutions, their business models differ.
For instance, Brex combines interchange fees with subscription services, whereas Ramp focuses on interchange fees and offers most software tools for free.
How does Ramp’s approach benefit businesses?
By offering free access to its B2B expense management software, Ramp reduces financial barriers for businesses seeking efficient spend management solutions.
This approach allows companies to leverage advanced tools without upfront costs, aligning with the needs of startups and mid-sized businesses.
Can Ramp’s model be replicated in other markets, like Nigeria?
While Ramp’s model is tailored for the US market, the underlying principles: leveraging interchange fees and offering free software tools can inspire fintech startups in Nigeria and other regions.
Adapting this model would require navigating local financial regulations and understanding regional payment infrastructures.
