SumUp launches digital wallet in B2C payments expansion bid

The news: Fintech SumUp expanded into consumer payments with a digital wallet for customers across Europe, per a press release.

Here’s how it works:

• A virtual Mastercard lets users make transfers, withdrawals, and remote or in-person purchases via Google Pay and Apple Pay.
• Users can collect rewards on purchases made using their virtual cards and earn more points for paying at SumUp merchants.
• SumUp merchants can offer one-click remote payments and QR code payments.
• And consumers can send and request money from each other, even if the other person doesn’t have a SumUp ewallet.

Why now? UK-based SumUp raised €590 million ($698 million) in a June downround that valued the point-of-sale payments provider at €8 billion ($9.5 billion). The valuation fell far short of the €20 billion ($22.6 billion) it reportedly targeted in January.

SumUp may be looking to diversify and grow by using its latest raise to expand into business-to-consumer (B2C) products. This would help it spread risk and tap demand in Europe for digital wallets so it can buck the wider economic downturn that’s hurt payment firms’ valuations.

Why it could work:

1. Proximity mobile payments are projected to grow 7.5% in Western Europe this year, per our forecasts.
2. The fintech’s rewards scheme can attract customers who want to earn points for their purchases.
3. And a unified product that lets customers make purchases and send and receive money can win over users with its ease, simplicity, and speed.

The bottom line: Mobile wallets are poised to pick up more consumers as cash use declines and digital payments become more popular. But SumUp faces stiff competition in the UK and Europe from more established firms like PayPal and Block, which also offer digital wallets and POS payment methods. If it can outcompete rivals, SumUp can capitalize on a market forecast to grow 22% compounded annually to hit a value of more than $16.2 trillion by 2031.

This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.

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