Card vs ACH changes Ramp economics

This is why Ramp cares less about total dollars spent than about which payment rail those dollars ride on. A $100,000 software invoice paid by ACH mostly produces software value and maybe a small transaction fee, while the same invoice paid on a Ramp card can generate interchange that is shared across Ramp, its bank partner, the network, rewards, and servicing. Bill pay and procurement matter because they give Ramp more chances to steer vendor payments onto card rails.1 2 3 4 5

• Ramp lets finance teams pay bills by card, ACH, wire, or check, and its help center explicitly positions card bill pay as a way to earn cashback. That means the same payable workflow can monetize very differently depending on whether the vendor will take a card or needs an ACH push.1 2 4
• Internal Ramp research estimated Bill Pay helped push Ramp to $30B annualized TPV by late 2023, but with a much lower monetization rate than card spend, around 0.1% for bill pay. So more payment volume is not automatically equal to more revenue yield. Mix matters.5 6
• This is a common split in spend software. Teampay describes the payment rails as commoditized and says the value is in controlling the workflow before and after payment. Ramp is taking the other side of the market, using software control to win the workflow, then capturing extra economics when that workflow can be settled on card rails.3 7

The next leg of growth is turning more accounts payable into card eligible spend without breaking the finance workflow. As Ramp gets better at vendor onboarding, virtual cards, and payment routing, the prize is not just more bills in the system, but a higher share of those bills clearing on the most lucrative rail.1 2 4 5