SumUp customer case study | Paysolut

SumUp needed to accelerate their pay-outs to customers, so they partnered with Paysolut. Learn how they've benefitted from access to SEPA Instant and more.

SumUp’s partnership with Paysolut - accelerating payment settlements within weeks

Receiving your money in seconds instead of several days makes a big difference for small merchants. SumUp, which provides card acceptance solutions for small businesses, sought to speed up the time it takes for funds to reach merchants’ accounts. A partnership with Paysolut provided SumUp with a gateway to the SEPA payments system, accelerating pay-outs to customers and increasing the value of SumUp’s services within weeks.

We sat down for a virtual chat with Dimitri Gugunava, VP Banking and Acquiring at SumUp, to discuss:

  • The importance of speedy payments to merchants;
  • How Paysolut expedited the SEPA integration process;
  • And the experience of working with Paysolut.

About SumUp

Founded in 2011, SumUp is a London-based financial technology company that helps small businesses power revenues through card payments. The company offers affordable, easy-to-use hardware and software solutions, including physical readers, online payments, invoices and other services.

“SumUp initially focused on providing payment acceptance solutions, but we quickly identified multiple challenges small business owners face that we could solve,“ says Dimitri, who joined SumUp in 2012. “We then started to build an ecosystem of payment products and services beyond purely card acceptance. Our suite of services now includes building online shops and taking payments over the web and via apps, invoicing, gift cards and wider point-of-sale solutions.”

SumUp is active in 33 countries across Europe and the Americas. It will soon be launching in Chile, Colombia and Romania. The company counts some 3 million businesses as customers.

Waiting for funds is a challenge for small merchants

SumUp had realized over time that it was challenging for small merchants to wait for multiple days to see the money their customers had paid them.

While SumUp enabled merchants to accept card payments instantly, existing payment rails meant the process of settlement for small businesses required a waiting time of three to five days for payments to clear through.

“Essentially, we depend on intermediary banking services providers to be able to move the money from the issuers through acquirers to our accounts, and finally to the merchants’ accounts,” Dimitri explains. “This process used to take several days, especially if the card payment was made before a weekend or a holiday.”

Seeking to improve the performance of their platform, SumUp set out to solve this problem and shorten the pay-out timeline.

“Meeting customer expectations is a moving target, so we’re constantly striving to improve our services. The feedback we were getting from our customers indicated that cutting pay-out times would have a significant positive impact - we set out to do just that.” Dimitri Gugunava, VP Banking and Acquiring at SumUp

Connecting to SEPA for instantaneous payments

For SumUp, the key to faster settlements was a direct link to the SEPA payment schemes that simplify international payments across the Eurozone.

Particularly important was a connection to the SEPA Instant scheme, which enables pan-European credit transfers in less than 10 seconds, including evening hours, weekends and holidays – periods when most traditional electronic payments are not operational.

According to Dimitri, SumUp considered several different dimensions when choosing the right solution for SEPA integration:

  • Technology: The technical solution had to be scalable and support SumUp’s product vision.
  • Commercial offer: Attractive commercial terms were an important factor.
  • Cultural fit: SumUp looked for a partner that was as fast-moving and ambitious as they are.

Within weeks SumUp were able to cut pay-out times to merchants down to just seconds

Paysolut’s flexible modular banking platform and competitive commercial offer made the company the perfect choice for SEPA integration. Using Paysolut’s SEPA gateway module, SumUp set up a connection to SEPA Clearing and Settlement services via the Bank of Lithuania’s CENTROlink system. The company also uses Paysolut payment and remittance applications to pay merchants in the UK in GBP.

“The legacy technology we used before partnering with Paysolut restricted our flexibility. Paysolut provided a scalable platform to innovate on, shortened the SEPA integration process and abstracted a lot of complexities for us,” Dimitri remembers.

Most importantly, SumUp obtained access to SEPA schemes within weeks. Integrating Paysolut’s SEPA module into SumUp’s existing architecture was quick and hassle-free, which meant that SumUp was able to speed up pay-outs and offer significant value to clients faster. In the fintech world, where speed is paramount, this was a great advantage.

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As a company, we like to move quickly, so time-to-market is important for us. Paysolut’s flexible API system helped us deliver major improvements to our services way faster than we could have done on our own.

Dimitri Gugunava, VP Banking and Acquiring at SumUp

SumUp has been using Paysolut to initiate SEPA transfers for over two years. Participating in the SEPA Instant scheme allows the company’s customers to receive funds in seconds, which shortens their cash conversion cycle and ensures they have the funds to meet short-term obligations.

Beyond providing the technical service behind the banking modules, Paysolut also helped SumUp in an advisory role during when the company was applying for an electronic money institution licence with the Bank of Lithuania.

“When partnering with Paysolut, our main goal was to get connected to the SEPA system and accelerate payments in the EEA area. We got all that and more.We’re very happy with the results of our partnership, and we are considering the possibility of extending it outside the continent, to countries such as the US and Brazil, and adding more currencies,” Dimitri reveals.

A true and lasting collaboration

Working with Paysolut went smoothly from the beginning, according to Dimitri, as the company was eager to support SumUp’s ambitious goals in terms of pace.

SumUp has been using Paysolut to initiate SEPA transfers for over two years. Participating in the SEPA Instant scheme allows the company’s customers to receive funds in seconds, which shortens their cash conversion cycle and ensures they have the funds to meet short-term obligations.

Beyond providing the technical service behind the banking modules, Paysolut also helped SumUp in an advisory role during when the company was applying for an electronic money institution licence with the Bank of Lithuania.

“When partnering with Paysolut, our main goal was to get connected to the SEPA system and accelerate payments in the EEA area. We got all that and more.We’re very happy with the results of our partnership, and we are considering the possibility of extending it outside the continent, to countries such as the US and Brazil, and adding more currencies,” Dimitri reveals.

A partnership that supports small business owners

Working with Paysolut helped SumUp to increase the value they offer to customers. This partnership ensures that small merchants get paid as quickly as possible so they can get on with growing their businesses.

“Empowering small business owners is our core goal. Our collaboration with Paysolut has enabled us to respond to their feedback, so we are very pleased with the results.”

SumUp acquiring Paysolut at the beginning of 2021 was an extension of the partnership between the two companies. According to Dimitri, the acquisition made a lot of sense after the two years of great results.

“We are looking forward to working together in the future and continuing to create more value for more customers in more counties,” he says. “We also hope to support Paysolut as they grow their modular banking platform.”

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