Berlin-based mobile payment service, SumUp, has raised an eight-figure Series A funding round reportedly worth USD20million from b-to-v Partners, Shortcut Venture, Tengelmann Ventures and serial angel Klaus Hommels, reports StrategyEye. The company powers services including Square and iZettle, which allow merchants take payments by scanning credit cards using a plug-in card reader that they can insert into a smartphone or tablet. SumUp's plug-in is compatible with Apple's iPhone and iPad and mobile devices running on Google's Android operating system.
The funding follows the firm launch of its product in the UK, Germany, Ireland and Austria after a four-month test period. SumUp takes a 2.75% commission on every transaction it processes, has partnered with MasterCard, Visa and Europay and claims that it is in negotiations with more credit card companies. It is worth noting that iZettle is currently embroiled in a dispute with Visa, which has dropped the payment service over its payment authentication process. SumUp is likely to beat Square and iZettle to the UK, where the Swedish firm is still operating in beta, and will also pip PayPal, which hasn’t as yet expanded outside of the US, to market.
Forecasts that the global m-payment market will turn over more than USD171billion this year mean that, despite the increase of m-payment services available in the market, investors are still channelling money at new startups developing in the space. However, SumUP will face strong competition from its more established rivals in Europe, such as iZettle and Square, as competition for merchant loyalty increases between payment services.