In an aggressive move, in the increasingly noisy market mobile POS market, SumUp, has announced a significant reduction of its transaction fee.
In the UK, SumUp will cut its fee to only 1.95% for all debit and credit card transactions, including MasterCard and Visa, down from previously 2.75%. The change will make SumUps rate one of the most competitive in the industry.
Stefan Jeschonnek, co-founder of SumUp and responsible for product, comments: For many of our merchants every single penny counts. Offering the best possible deal to our merchants is key to us. Following our authorisation as Payment Institution by the Financial Conduct Authority (FCA) earlier this year, we are now underwriting, processing and settling transactions end-to-end through our own technology stack. This gives us a significantly lower cost base. We are excited to be able to pass the savings on to our merchants.
The fee reduction will automatically apply to all transactions of SumUp merchants in the UK, starting today.
The fee cut follows SumUps recent announcement of an investment by BBVA Ventures and the companys planned expansion to South America.