Fintech Corporate Cards Are a Wake-Up Call for Legacy Issuers

Financial technology company Ramp has announced a series of enhancements to its corporate card program that integrate with accounting platforms and facilitate expense management.

Ramp isn’t a traditional credit card company, but that doesn’t mean it can’t take business away from issuers that serve corporate clients.

Issuers should keep an eye on developments that Ramp — and other fintechs that offer corporate cards — bring to the card arena. As technologies expand and more companies compete to provide payment solutions to businesses, legacy issuers that don’t keep pace with product enhancements fintechs offer may fall behind.

Ramp describes its corporate card as one “designed for modern finance.” The company’s corporate charge card comes with a 30-day payback period, and Ramp assigns credit limits based on a business’s finances, such as revenue or funds raised.

The card’s latest enhancements allow businesses to eliminate or minimize manual expense workflows and bring increased efficiency to accounting functions.

Businesses that employ Ramp’s corporate card can customize spend controls.

Businesses that use the Ramp card so employees can pay for work-related expenditures can now customize spending controls on each employee’s card. Businesses can also streamline the process of setting spending controls by assigning limits that apply to entire departments.

Both of these updates stand to decrease fraud in corporate card programs. Employees can misuse corporate cards by making unauthorized transactions, overspending, or submitting inaccurate expense reports.

But Ramp’s updated solutions can ensure that an employee’s misuse of a corporate card doesn’t lead to losses that extend beyond a company’s control.

Credit card issuers that offer instant issue cards can help cardholders avoid missed payments when they misplace their card. Instant issuance can also be a lifesaver for someone who needs to open a new card to cover urgent expenses.

In the same way, businesses that instantly issue corporate cards can allow their employees to access company funds when they need them the most. 

Ramp now offers instant issuance of physical and virtual corporate cards. Businesses can improve vendor management practices and help prevent unauthorized card charges by setting dedicated virtual cards for use with vendors.

Ramp’s updates reflect “the company’s commitment to giving businesses smarter, safer, and faster ways to control spending,” according toa press release.

“As global teams and remote workforces expand, Ramp’s expense management solution ensures seamless financial oversight across geographies and departments,” according to the release. “Audit trails are automatically maintained, providing businesses with ready access to clean, transparent transaction histories for compliance.” 

Ramp’s corporate card may not be an ideal payment solution for all businesses, particularly those that anticipate occasionally carrying balances on their cards from one month to the next. 

But the company’s innovative solutions, which include plans to launch a stablecoin-backed corporate card, position it as a payment provider that legacy issuers should keep tabs on. 

As the payments landscape evolves, many businesses may be looking for a corporate card partner that offers the latest and most secure features, regardless of whether that partner is an established name in the industry.