Paypal rival SumUp acquires Fivestars for $317 million

Karthik Subramanian

London-based payments platform, SumUp, has announced the acquisition of Fivestars, a marketing automation platform for $317 million in what is seen as its entry into the US and a direct challenge to its rival Paypal.

Fivestars is a local commerce network in the US that integrates an automated marketing platform along with payments and loyalty and, likely, this new platform born through the acquisition will further bolster the integration of merchants and help them ease the payments systems for these merchants and businesses. Through this acquisition, SumUp would be able to get access to the vast userbase of Fivestars which is expected to have around 70 million users and 12,000 small businesses and it is reported to have $3 billion in sales and 100 million transactions annually.

“We founded Fivestars to allow small businesses to thrive in the digital economy, and over the years we’ve achieved just that. Understanding that SumUp shares this mission, it was an easy decision to partner, and together, we look forward to supporting a retail market that champions small business success,” Victor Ho, CEO of Fivestars, said.

This acquisition is likely to heat the payments space within the US and should put some pressure on Paypal at a time when Paypal is looking to become a financial superapp. It makes sense for SumUp to choose this time to expand as globally, the payments industry has been one of the most sought-after industries by both investors and users following the pandemic. The number of digital payments being made has increased exponentially over the last couple of years with many people getting used to the idea of making digital payments and using wallets for even simple and basic needs. The merchants have also realized this and hence are always looking for payment solutions that make integration and accounting much easier for them.

“SumUp is a market leader because of our support for, and belief in, small businesses. Our global community of merchants has battled through lockdowns and volatility, and we’re confident that this acquisition will further energize the U.S.’s recovering small business economy,” said Marc-Alexander Christ, SumUp co-founder.

SumUp raised 750 million pounds in March and has a presence in 3 continents and would hope that its foray into the US at this crucial time would bear fruit like its entry into other markets in the past, despite strong competition.

  • Read this next

    Fintech

    Nubank makes impressive turnaround, posting $1 billion profit in 2023

    Brazil’s Nubank has made a remarkable turnaround, swinging from a net loss in 2022 to a $1 billion net profit in 2023. The digital bank’s revenues have soared past $8 billion, marking a major milestone in its financial performance.

    Retail FX

    Spanish watchdog warns of UP MARKETS, BITBINX

    The Comision Nacional del Mercado de Valores (CNMV), the financial regulatory body of Spain, announced in a statement that it has added to its warning list new website that are illegally offering financial services to Spanish citizens.

    Digital Assets

    MicroStrategy buys 3,000 more bitcoins, suffers phishing attack

    MicroStrategy, the largest corporate investor in bitcoin, has expanded its cryptocurrency portfolio by buying an additional 3,000 bitcoins for $155 million.

    Crypto Insider

    Saudi Launches World’s First Cultural Metaverse

    The Saudi Ministry of Culture, droppGroup, and Oracle have joined forces to launch the Cultural Universe, the world’s first government-operated national Metaverse initiative.

    Retail FX

    eToro revives IPO plans after failed $10B SPAC merger

    Israeli social trading network eToro is actively exploring options for a public market listing, according to CEO Yoni Assia in an exclusive interview with CNBC.

    Digital Assets

    Meme Coin Communities Gear Up for the CoinMarketCap Crypto Awards

    CoinMarketCap’s Crypto Awards 2024, the first edition of a new annual event, is captivating the global crypto community. This is especially true for the Meme Coin Of The Year category, where voting has become a battleground for the most passionate and vibrant communities in the crypto space.

    Digital Assets

    Sui Recognized as 2024 Blockchain Solution of the Year at AIBC Eurasia Awards

    The Layer-1 Received the Top Honor at the Eurasia Awards While Experiencing a Period of Unprecedented Growth and Recognition

    Crypto Insider

    Vitalik Buterin, Sandeep Nailwal Lead Decentralized AGI Summit, Address Centralized AI Risks at ETHDenver

    Sentient and Symbolic Capital’s Decentralized AGI Summit will feature leading Decentralized AI authorities like Vitalik Buterin and Sandeep Nailwal.

    Digital Assets

    Aethir Unveils Its First Decentralized AI Node Sale

    Aethir, a leader in decentralized GPU cloud infrastructure, has announced its highly anticipated Node Sale.

    <