All payments made with mobile devices like smartphones or tablets are described as mobile payments. With technology advancement, these smooth payments have become more improved, facilitating how people transfer money and its picking up really fast in the UK.
London-based global payments service provider, SumUp has been using this opportunity to the fullest and has shown fast growth in the recent year. Now the mobile payments firm has secured a huge €750 million (nearly £642 million) funding. The oversubscribed round was led by Goldman Sachs, Temasek, Bain Capital Credit, Crestline, and funds managed by Oaktree Capital Management, L.P..
SumUp stated that the fresh investment will be used to accelerate its growth and continue to acquire and support its existing merchants in 33 global markets. It will also be used to continue expanding SumUp’s product suite, both organically and through acquisitions (M&A) and for refinancing existing debt facilities.
Marc-Alexander Christ, Co-founder at SumUp commented, “As one of the fastest-growing technology companies in the world, this cash injection – in addition to having the built-in option to expand the financing – will significantly accelerate the growth of our customer base, enhance SumUp’s technology leadership position, and drive the development of new services to support our merchants globally.”
Tom Maughan, from Bain Capital Credit commented,” We have huge admiration for what SumUp is doing for small businesses across the world in helping them to keep trading and flourishing in some of the most trying economic circumstances imaginable.”
Founded in 2011 by Daniel Klein, Jan Deepen, Marc-Alexander Christ, Petter Made, and Stefan Jeschonnek, SumUp grew considerably in 2020 during the pandemic. It unveiled a slew of new solutions and innovations to help businesses navigate the operating restrictions brought about by repeated lockdowns. These include the launch of payment links and invoicing options and new online selling functionalities through the ‘SumUp Online Store’.
Also, it came up with gift card collaborations with Google, Facebook, and Instagram and solutions designed to help business owners to receive payments safely and continue trading in the face of uncertain economic circumstances.
In a year, SumUp intends to grow its team to over 2000 by adding the world’s best talent to its 19 international offices in three continents. Besides its prominence in Europe, the US, and Brazil, SumUp also plans to expand into Asia.
In Europe, SumUp has launched in Romania, bringing the number of its European markets to 29. When it comes to new markets, SumUp works with the intention to establish its presence in Chile, Colombia abd LATAM ver 50 million people now able to come into contact with the company’s technology.
With thousands of merchants joining the SumUp services every day, its proprietary card terminals are relied upon by over 3 million businesses globally.
So, how is SumUp securing this fast-track growth? Like most success stories, there are a few factors at play here – we asked Marc Alexander Christ, Co-Founder of SumUp, to outline the top three key factors behind SumUp’s success. Here it goes.
1. The futuristic acquisitions
“Merchant acquisition involves acquiring new merchants and expanding our customer base. This has been part of our DNA since day one and is a huge factor in us successfully achieving our mission of empowering small businesses to grow and thrive through card acceptance while doing what they love. Today, we service over three million users globally.”
SumUp broadened its portfolio in the POS and gastronomy space in the UK and Europe with Goodtill and Tiller’s acquisition, leading POS software providers. They also completed the acquisition of the core-banking system provider Paysolut to build up its offering of banking services for merchants.
With this, SumUp will come into contact with millions of new customers from cafes and restaurants to the biggest sports stadiums and concert arenas. It signals a new generation of SumUp merchants joining into the play.
2. The accurate expansion plan
“Market expansion involves quickly and efficiently expanding to various markets around the world. This has been instrumental to our sustained growth, and our ability to rapidly acquire new customers.
SumUp is currently used in over 33 countries on three different continents, and we are always looking to expand and support even more merchants globally. We are currently evaluating Asia as a potential market.”
3. Solving the real problem with your product
“Expanding our product suite beyond our initial card reader has been a key focus of ours over the past couple of years, to ensure we support our merchants in the best possible way.
Since the start of the pandemic, in particular, we have unveiled a host of solutions and products designed for future-proof merchants’ long-term prospects and help them navigate the operating restrictions brought about by COVID-19. These include new online selling functionalities and gift card collaborations with Google, Facebook and Instagram.”