Ramp targets Bill.com with free payments software

Eric Jaliman and Karim Attieh, founders of card startup Ramp

CNBC has learned that credit card startup Ramp is tracking publicly traded competitor Bill.com with a free billing and payments management platform.

The startup has grown rapidly this year by offering a cashback card for small and medium-sized businesses paired with a program that outlines ways customers can save money. Rump says transaction volumes have jumped 50% in the two months since the company raised $3.9 billion.

To keep this growth going, the New York-based startup has set its sights on customers of Bill.com, a financial technology company that automates bill processing and payment, said Ramp CEO Eric Jaliman. He said paying bills is a time-consuming, time-consuming and error-prone process for most businesses.

“Our software takes what could be several minutes to get into it and much more to make sure you’re doing the right things in a matter of seconds,” Jaliman said. “Finance teams are tired of using three or four systems just to make payments and close their books.”

Screenshot of Ramp’s new billing feature for corporate card startup.

Source: Ram

Ramp took a year to develop the feature, which involves using an artificial intelligence technology called optical character recognition to extract information from invoices and automatically fill out forms. Jaliman said feedback from some of the hundreds of customers who used Bill Payments in the pilot has been positive.

While Jaliman estimates that his rival has a small fraction of the overall opportunity, Bill.com’s market capitalization has risen from less than $3 billion to about $30 billion in less than two years. The company’s stock is up 120% this year amid investor enthusiasm for all things digital.

Jaliman said that Ramp is abandoning its software in the hope that it will lead to new customers and deeper relationships with existing customers. He said about 20% of Ramp’s customers use Bill.com’s services.

“The current plan is that at launch we want to make this completely free for anyone who signs up,” Jaliman said. “I think this is very annoying, but it’s great for customers.”

Become a smarter investor with CNBC Pro.
Get stock picks, analyst calls, exclusive interviews, and access to CNBC TV.
Sign up to start Free trial today.

.

Leave a Comment