Mastercard Mastercard has partnered with UK based Fintech SumUp, this partnership will increase the number of electronic payment acceptance locations across 27 European countries. In the next five years, Mastercard and SumUp will bring card acceptance to several micro, small and medium-sized companies (MSMEs) across Europe. SumUp’s partnership with Mastercard will enable small and medium-sized companies (MSMEs) to accept electronic payment via card readers and digital-enabled devices, such as smartphones, smartwatches or wristbands.

Marcel Schneider, CCO & EVP Europe at SumUp commented, “There is a card acceptance gap that exists due to smaller businesses historically not being well-served by traditional payment providers. 10% of any population should be able to accept card payments but only around 1% does. It’s this gap that SumUp and Mastercard are looking to fill through the partnership.”

SumUp’s data shows that small businesses can grow up to 60% by starting to accept card payments Mastercard’s research shows that on average, new acceptors of card payments usually see a 10-15% increase in their average transaction size, linked to value and volume as consumers are not limited to the amount of cash in their pocket. This is an issue for small shop owners in more remote rural areas where access to cash and ATMs can be scarce. Electronic payments provide a boost to cash flow, enabling the timely crediting of funds with the benefit of a payment guarantee and eliminating the need to chase unpaid invoices and debt.

Earlier this month Mastercard has entered into similar partnerships with Zoho and Nationwide to serve the financial demands of the small businesses.

by Megha Bhattacharya
Market Analyst at IBS Intelligence