Groupon and American Express Invest Millions in European Rival to Square
Groupon and American Express have teamed up to invest millions of Euros into the startup payment processing group, SumUp. SumUp will offer a credit card processing device similar to Square that hooks up to smartphones. Backed by over $20 million USD, this company is certainly off to a good start.
With SumUp, small business owners are able to take credit card payments in their offices or on the go with a simple smartphone accessory. By downloading an app to their phones, users can use the card reader to take payments at any time. SumUp is also working on a POS system right now for restaurants and other standing businesses, applying the same basic technology in other devices.
SumUp has been around for a while, but it has never had significant financial support. Amex and Groupon believe that SumUp is Europe’s answer to Square’s technology, so they have put money into the program to make sure it succeeds. The card readers are currently available in the UK, Ireland, Spain, Italy, Austria, the Netherlands, France, Portugal, Russia and Belgium. SumUp hopes to expand beyond those areas with the help of this new money.
“We are delighted to bring on Groupon and American Express as financial investors. Both companies share our vision and our commitment to empowering small businesses,” said Daniel Klein, CEO of SumUp. “As one of the world’s largest card issuers, American Express is at the forefront of driving innovation in payments. Groupon has proven that it is possible to build a company serving millions of small merchants worldwide in a short period of time. This unique blend of experiences has been a driving factor for us in taking them on as new investors.”