Globally, the mobile POS market has gained significant traction. Leading POS manufacturers such as VeriFone, Ingenico and NCR have already entered this market through partnerships and acquisitions. Square, the first mover in the space, has also recently partnered with Apple to launch a new card reader this fall. The small and micro merchant segment looks to be a sizable opportunity for all mobile POS manufacturers with the US alone having about 25 million micro merchants.
Mobile payment solutions provider SumUp recently raised another round of funding expected to be in “double-digit million dollars.” Till date, the total funding raised by the company is around 40 million euros. Swiss venture capital firm Venture Incubator AG is the new investor. Getting Venture Incubator AG onboard would mean that SumUp will also get the strategic advantage of Credit Suisse, ABB and Nestlé (who are investors of Venture Incubator AG) as they may promote SumUp’s products.
According to SumUp, the funding will be used to develop new capabilities for its recently launched chip-and-PIN card terminal and to expand to new geographies. The company is currently present in 13 countries across Western Europe, Russia and Brazil and is planning to expand to two more geographies this year, of which one is expected to be Sweden (the home market of iZettle, its close rival).
The company manufactures its own hardware and does not partner with anyone. According to the company executive, the firm is making a profit on the hardware. As transaction processing is a volume game, the company has also done reasonably well by expanding to new geographies. SumUp already has about 300,000 merchants using its platform for accepting payments.
In addition the new investment, SumUp has also announced that two of its four co-founders will be stepping down from their executive positions. Stefan Jeschonnek and Dr. Jan Deepen will no longer be SumUp’s Chief Product Officer and Chief Commercial Officer respectively. The company did not specify the reason for this nor did name anyone yet as their replacement. Last year, SumUp had closed its office in Dublin, just 18 months after it opened, with the loss of about 30 jobs. The reason cited for closure was “cost reduction.”