How Does SumUp Make Money? Business Model of SumUp

How Does Sumup Make Money

Founded in 2012, SumUp is one of the fastest-growing mobile payment companies globally. Servicing multinational corporations to global franchises, the company focuses on empowering businesses to collect their payments digitally.

How does SumUp make money? This is an important question that you probably have in mind. This article will break down SumUp’s business model and explain how exactly does SumUp make money.

SumUp operates on a revenue-sharing business model. The company makes money by charging a transaction fee for each transaction completed through their mobile point of sale platform.

About SumUp

For business owners, entrepreneurs, and anyone testing their feet in the waters of the gig economy, getting paid matters. In today’s digital world, evolving your business model to accept payments in a variety of ways can make or break your venture.

SumUp is a fintech payments company that is based out of Europe. It allows businesses to accept payments and request funds professionally with a simple processing service.

Their flagship product SumUp card reader allows businesses to accept credit or debit cards payments using their smartphone or tablet. With its unparalleled simplicity with secured payment processing, it’s no wonder their quick spread worldwide.

Since its establishment in 2012, SumUp has expanded to reach a variety of countries from Austria and Germany to Poland, the UK, and the USA.


Business Model of SumUp

SumUp has a strong business model that gives users a simple and affordable POS solution. The company’s revenue share model provides a steady stream of income from its customer’s transactions.

SumUp does not sell traditional products or services at a nearby location. There is no need for a warehouse or for inventory tracking for those who work for SumUp. Instead, SumUp operates on a processing fee basis, charging a flat processing fee for each transaction. SumUp helps to process transactions for a nominal fee for both clients and customers alike.

They provide today’s entrepreneurs and business owners the opportunity to accept payments remotely and from just about anywhere. With SumUp, adding a credit card processor and/or chip reader to your smartphone can open an entirely new world of potential opportunities and possibilities when it comes to making sales and generating revenue.

For customers of SumUp, a flat processing fee is charged for all transactions regardless of the amount charged on the card and also regardless of the card type that is being used in the transaction itself.

Their business model allows them to generate revenue using a flat processing fee with each transaction they help to process and clear. Understanding their business model can help you to determine if the service is right for you and your business venture.


SumUp, founded in 2012, has since skyrocketed in growth with the expansion of the gig economy around the globe.

With SumUp, it is easier than ever to accept payments and begin taking your own business and/or venture seriously, especially when it comes to making sales and attracting new prospective customers.

Some of the most notable features that make SumUp stand out to those in business today include:

  • SumUp is available in countries from Belgium and Finland to Chile, Greece, Hungary, France, Switzerland, Spain, Sweden, Luxembourg, the US, and more.
  • SumUp is one of the most affordable credit card processing servers, as the most expensive equipment available to purchase directly from SumUp is approximately $19 USD.
  • The transaction charge rates that come with the use of the SumUp processing unit are predictable as well as simplified and affordable. No more playing guessing games when it comes to predicting potential fees or service costs you may incur while you are simply trying to operate and manage your business.
  • With SumUp, you will have plenty of opportunities to accept payments in a variety of ways, which is optimal for any business owner or entrepreneur
  • It is also possible to build a backend product catalog on your own mobile phone, which is optimal for those who are interested in adding more than one product from your eCommerce storefront or online shop prior to completing their purchase.

In addition to these features, SumUp also offers the following advantages over alternative POS solutions and contracts:

  • SumUp is affordable to get started with, which is optimal for those who are new to eCommerce and selling products on the go. Getting started with SumUp is possible for as little as $19 USD, and that includes the purchase of the SumUp software as well as the chip reader necessary to begin selling. Once the SumUp hardware is purchased, businesses can begin to accept credit cards along with Google Pay and Apple Pay.
  • SumUp helps ditch complicated POS solutions as well as complex and confusing terminals. With SumUp, companies gain access to a new digital form of processing payments rather than going backward in time to utilize outdated terminal and POS solutions.
  • It is also possible to send text payment links via SumUp, making it easier than ever to collect payments for services or products already delivered to your customers.
  • SumUp can help send invoices, request key payments into a specific virtual terminal, and even work with digital wallets to accept and request payments, depending on the needs of organizations.

When thinking of investing in SumUp, it is also important to consider some of the drawbacks of the service, such as:

  • Lack of POS system: For medium and large-sized businesses, a traditional POS system and processing terminal may be optimal, especially if you own or operate your very own storefront. With a lack of POS systems, SumUp is not optimal for those who require a more extensive and robust solution.
  • Lack of employee management: With SumUp, it is important to remember that there are no extensive software solutions or tracking and inventory management services included. With a bare-bones POS solution, SumUp is not optimal for those with major client lists and plenty of employees and inventory to track.


Target Audience

SumUp is perfect for the individual entrepreneur who is just getting started or even for those selling digital goods and smaller products locally. Having the ability to process payments on the go or on a whim is a major feature of SumUp, one that is not available with traditional POS terminal systems.

SumUp targets the entrepreneur who may be building their own business or empire from the ground up. Those who are bootstrapping their business ideas are not as likely to have millions of dollars in funding, which is why SumUp is an optimal solution for sellers and entrepreneurs on a budget.

SumUp also works for entrepreneurs who intend to sell products at local art or craft shows or even for small businesses providing services to those in the community. With SumUp, they can accept payments from virtually any location, as long as they have a wireless internet connection.

SumUp is perfect for anyone who is just getting started in retail or even in eCommerce, regardless of the niche or industry you represent. 

All in all, SumUp is definitely designed for selling from anywhere. With the help of SumUp POS, small businesses can increase sales and earn a profit with fewer restrictions and limitations.


How Does SumUp Make Money?

Because SumUp is one of the most affordable POS alternative solutions available on the market today, it is a wonder how the company generates revenue for itself.

Transaction Fees

Currently, SumUp generates most of its revenue by charging transaction fees. While it does earn a nominal profit on the hardware and the software that is sold, at $19, SumUp offers one of the cheapest payment processing solutions available to any business owner.

SumUp makes money by charging a flat processing fee and rate for all of the service providers and entrepreneurs who choose to use the POS system to request and process their own payments.

Their pricing model is extremely transparent and straightforward, making it easy to get started with sales without feeling left in the dark.

When making a sale in person, there is a one-time 2.75% transaction fee charged for each payment that is accepted and processed. These payments include chipped cards, swipe payments, as well as contactless payments for total flexibility.

For remote sales, link-based payments, or phone sales, a $0.15 fee is required in addition to a 3.25% processing transaction fee.

Using SumUp for invoicing purposes and sending unlimited invoices is possible for free with the use of the SumUp App. A 2.90% transaction fee in addition to $0.15 per transaction fee is charged to complete and pay invoices online with the use of SumUp.


Card Reader Sales

SumUp charges a one-time fee for ordering their hardware-based card reader solution for businesses to accept payments.

SumUp has growing revenues from its multiple versions of card readers; all depending on which version you purchase. Their pricing ranges from $19 to $119.


SumUp Funding, Valuation, and Revenue

In 2016, SumUp officially merged with Payleven. However, SumUp has since retained its own branding and brand image to help with the expansion and growth of the business. According to, SumUp’s approximate revenue was over £116 million in 2019 alone, compared to £27 million in 2017.

Currently, SumUp has gone through 11 funding rounds, with a total of more than $1.4 billion in funding so far, according to Crunchbase. Both Oaktree Capital Management, and Goldman Sachs, are two of the most recent investors in the business, bringing the total number of investors in SumUp to 23, with 7 lead investors in play.


Is SumUp Profitable?

SumUp is a profitable company. Its current strategy is to grow revenues through increasing device adoption and enhancing its services to its existing customer base of small businesses and merchants.

According to SumUp, they are the first mobile payment provider to hit profitability throughout the market. In 2016 alone, SumUp was fast approaching $100 million in annual revenue.

The fast-growing nature of today’s chipless society and remote payment processing shows plenty of promise for the future of SumUp.


Conclusion: How Does SumUp Make Money?

We’ve reached the end of this article. By now you should have a complete understanding of how SumUp does business, who they are, what they do, and how they make money.

You see, SumUp made a few smart decisions that led them to where they are today. Their merchant base is growing hour by hour due to the rising popularity of innovative payment solutions in online marketplaces.

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