SumUp acquires customer loyalty startup Fivestars
October 15, 2021
SumUp, best known for its small credit card readers, has 3 million businesses in 34 markets across Europe, the US and Latin America. The firm competes with Sweden’s iZettle, which was acquired by PayPal in 2018, as well as Square.
Fivestars was launched by two McKinsey alumni who saw an opportunity to make enterprise-grade loyalty technology available to small businesses. The company raised a $52.5M Series D round in the peak of the pandemic last year, bringing its total investment to $145.5M, and facilitating a move to bundle payment processing services with its core loyalty platform.
That funding has been used both to continue building out SumUp’s platform and footprint in existing markets, as well as to move into new territories.
Fivestars is a popular product, and SumUp hopes to leverage that existing business, which Fivestars says drives more than $3 billion in sales and 100 million transactions per year, to grow its own relationships with merchants, specifically signing them up to SumUp’s own card readers and other sales technology. The plan will be to keep Fivestars’ branding for now and to work on integrating its product more closely into SumUp’s platform.