The news: UK-based point-of-sale (POS) tech provider SumUp acquired Fivestars, a customer loyalty platform based in the US, for $317 million, per a press release. Fivestars offers POS loyalty, marketing, and payments solutions to 12,000 small merchants, and its offerings have been used by 70 million consumers. SumUp has about 3 million merchant partners in 34 markets.
What it means: SumUp’s Fivestars acquisition gives it a stronger foothold in the US, where its main competitors—including PayPal’s Zettle and Square—do a lot of business.
Just like these players, SumUp offers card readers, payment processing, invoicing, and other solutions—but it mostly serves the European market and some Latin American countries. But that market may be getting more competitive as Square and PayPal increasingly look overseas:
These expansion efforts may have influenced SumUp’s decision to foray into the US.
The opportunity: SumUp can use Fivestars to broaden its POS solutions and attract more merchant business.
Related content: Check out our “Small Business Point-Of-Sale Battle” report to learn about what providers like PayPal, Square, and Toast have done to support small merchants and tactics they’ve employed to expand their reach.
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