SumUp announced the $317 million acquisition of Fivestars last week, and many wondered what this would mean for the financial services company.
Over the last couple of years, SumUp had seen success in its mobile payment services. In fact, SumUp raised a total of $1.4 billion in equity and debt financing since its inception in 2012.
As a result, absorbing an all-in-one payments and marketing platform appeared to signal an expansion in terms of services and geography.
In a statement, SumUp noted that the acquisition would help with plans to become a service that is used across the world. However, the company stressed that it was not a direct competitor with PayPal and instead would focus on small-sized vendors.
UNLEASH caught up with Andrew Helms, US managing director at SumUp, about the progress the company has made during the pandemic.
Helms explains that during the pandemic “like many businesses the world over, SumUp had to determine the safest way to operate and, in our unique case, to continue supporting merchants as they reacted and adapted to local COVID-19 restrictions in their market.”
By doing this SumUp could help small businesses by developing and enhancing the offering of merchants.
Helms says: “We [SumUp] have revamped the Online Store, meaning merchants have more tools to harness growth through digital means, and added new remote payment products, expanding and improving the channels through which our merchants could get paid safely.”
These kinds of endeavors, enable the company to help “businesses of any size, however small in headcount, to benefit from advances in payment technology, digital tools, and business development.”
The future of SumUp
Looking ahead, Helms claims: “SumUp will continue to grow and support our merchants, allowing them to thrive in the new economy, whilst further building out our product ecosystem.
“Our focus is continuing to deliver for our merchants, enabling them to make a success of their business.”
In terms of how the acquisition of Fivestars enables the company to focus on this mission, Helms notes: “Following the acquisition of Fivestars, we look forward to supporting more merchants in the US and Canada, as well as rolling out the core customer relationship management (CRM) tool to European and Latin American markets.
“SumUp looks forward to widening the product suite to ensure our 3 million-plus merchants have access to the best tools possible.”
When it comes to the competition that this expansion brings Helms says: “SumUp offers a full merchant toolkit, developed with the smallest and the most unique merchants in mind.
“Our biggest competitor is not another company, but the use of cash globally. We are not opposed to its use, as it means the unbanked or otherwise vulnerable people still have financial independence, rather, we want to make our digital toolbox available to all to make sure the small merchants and their customers are not left behind.”