Just days after relaunching its online store and appointing a new CEO for its European operations, point of sale (POS) technology provider SumUp announced the acquisition of customer loyalty startup Fivestars for $317 million. The purchase marks SumUp’s sixth overall acquisition but its first in the U.S.
“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 SumUp Co-founder Marc-Alexander Christ. “Now is the time to make sure our presence is as strong in the U.S. as it is in Europe and, by acquiring Fivestars, SumUp will deliver for U.S.-based merchants as it has in other international markets.”
SumUp launched in 2011 and now helps three million merchants across the globe get paid. The company offers card reader, QR code and POS payment technologies, along with management and reporting tools and invoicing capabilities. Lacking in this product lineup, however, are loyalty and rewards offerings. This is where the integration of Fivestars’ technology comes in. Providing small business clients a way to reward their customers and build loyalty will help SumUp compete with other POS technology providers such as Square, Shopify, PayPal and Zettle.
Founded in 2010, Fivestars helps businesses set up a digital rewards program that gives customers points and gifts for their purchases. The technology automatically sends campaigns to welcome new customers, celebrate their birthdays, and bring back customers who haven’t visited recently. Fivestars also offers enterprise loyalty programs for larger franchises; clients include brands such as Play it Again Sports, Super Cuts, and Orange Leaf.
The acquisition will also help SumUp launch operations in a new geographical market. The U.K.-based company will now have access to Fivestars’ 70 million consumer members and 12,000 small businesses; a network which drives $3 billion in sales and 100 million transactions each year. Fivestars’ San-Francisco-based team, along with its CEO, Victor Ho, will remain in their roles and continue to operate Fivestars.
SumUp raised $869 million (€750 million) earlier this year, bringing its total funding to $1.4 billion. The company supports over three million merchant users in 34 markets.