SumUp: United Kingdom’s financial technology company that is taking the world by storm
SumUp is a financial technology company that is headquartered in London, United Kingdom. SumUp is able to provide support for more than 3.5 million merchants in more than 30 markets around the world and runs a product line of specialized business tools designed especially for micro and nano markets. The company provides a mobile point-of-sale (mPOS) solution that enables small businesses to accept card payments easily and affordably.
Since its launch, SumUp has experienced tremendous success and its innovative product and business model have made it one of the most exciting fintech startups in the United Kingdom.
History of SumUp
SumUp was founded in 2011 by Daniel Klein, Marc-Alexander Christ, Stefan Jeschonnek, and Dr. Jan Deepen. Currently, Daniel Klein serves as the CEO at SumUp.
The idea for SumUp came to the founders when they noticed the need for digital payment options for small merchants and businesses. Individuals running small operations on streets like food carts, and flower stalls, or those with shops such as small eateries, barbers, vegetable vendors, etc, had limited options for accepting digital payments. The options that were presented were too costly for such small merchants and businesses.
The founders saw this problem as an opportunity and as a solution, so they started working on a tech-based solution that would provide digital payment options at an affordable rate to small merchants and businesses. With this intention, SumUp was launched.
The initial idea was to create a hardware device that would connect to a mobile phone or tablet and enable businesses to accept card payments. The founders quickly realized this approach would be too expensive and complicated for small businesses.
They soon decided to pivot and focus on creating a software-only solution that would work on any smartphone or tablet. This decision was a game changer for SumUp, enabling the company to offer a more affordable and scalable solution.
So how does SumUp’s mobile point-of-sale solution work? It works by using a small card reader that connects to a smartphone or tablet via Bluetooth. The card reader will be able to accept all the major credit and debit cards, including Visa, Mastercard, and American Express. The software is easy to use and can be downloaded for free from the app store or google play.
SumUp’s primary product is an EMV card reader that accepts various cards such as chip-based cards, magnetic strip cards, and NFC/RFID payment cards.
Other products that are offered by SumUp include a solo card reader, plus a card reader and Point of Scales (PoS) machines. SumUp is looking to expand operations to cover other related financial services.
Factors Behind SumUp’s Success
One of the key factors that have contributed to SumUp’s success is its focus on customer needs. The company has always listened to the feedback from its customers and has continuously improved its product to meet their needs. For example, SumUp has introduced features such as tipping and receipt printing, which have been a high request by users.
Another factor that has helped the company to grow is its ability to scale rapidly. The company has been able to expand its operation in over 30 countries including the United Kingdom, the US, France, and Germany.
SumUp has received investments worth more than $2 billion via 12 rounds of funding. All this funding has enabled SumUp to invest in product development, marketing, and customer support which have all contributed to its growth. In the last funding round held in July 2022, SumUp received a massive investment worth €590 million which helped it to touch €8 billion, thereby achieving the coveted Unicorn tag.
SumUp’s success has not gone unnoticed as the company has received numerous accolades and awards over the years. In 2015, SumUp has named the best payment startup at the TechCrunch Europas Awards. In 2017. The company was named one of the fastest-growing companies in Europe by the Financial Times and in 2018, Sumup was named the Best Mobile Point of sale solution at the Merchant Payment Ecosystem awards.
SumUp Competition and Future
No success is achieved without failure and competition. For any given role you might be competing with 1000s of people who might have the same idea as you have for the business. Similarly, SumUp’s success is no joke as it has a bunch of competitors that are hungry for the market of the same customers. SumUp competes with rivals such as SquareUp, Lightspeed Commerce, Shopify POS, Heartland Retail, and LS retail to name a few.
These companies have larger budgets and more resources, which have enabled them to offer more extensive product suites and marketing campaigns. However, SumUp has differentiated itself from its competitors by focusing on simplicity and affordability, which has resonated with small businesses.
SumUp’s future goals are the same as it was in the past and present and that is to listen to the customers and provide them with the best possible solution to solve their problems. SumUp has been praised in the past for always listening to the users and thus they plan on doing the same.