New updates have been reported about Ramp (PC:RMPVK)
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Ramp, a fintech startup known for its corporate card and expense management solutions, is making a strategic move into the digital banking space with the launch of Ramp Treasury. This new product enables businesses to earn interest on their cash holdings, a step that CEO Eric Glyman believes will significantly enhance Ramp’s value proposition. Unlike traditional checking accounts that often offer negligible interest rates, Ramp Treasury allows businesses to earn 2.5% on cash stored in a business account or potentially higher yields through a money market fund. This initiative is designed to complement existing bank accounts, providing businesses with more liquidity and financial flexibility.
Partnering with First Internet Bank of Indiana for cash deposits and Apex for investment services, Ramp is not positioning itself as a digital bank but rather as a comprehensive financial service provider. This move is expected to bolster Ramp’s financial performance by generating revenue from spreads on aggregate balances, in addition to its existing income streams from interchange fees, transaction fees, and SaaS revenue. With over 30,000 customers and $50 billion in transactions, Ramp is poised for growth, having already achieved significant revenue milestones. The company, which has not had to lay off employees despite valuation challenges, is also considering a future IPO as part of its long-term strategy. Glyman emphasizes that Ramp’s focus remains on building a robust business, whether it remains private or goes public.