Flatpay raised a $52.2 million (€45 million) Series B in April 2024 led by Dawn Capital. The Series B brought total lifetime funding to approximately $76.6 million (€66 million). ​⁠

Prior to the Series B, Flatpay raised just under $17.4 million (€15 million) across earlier rounds. The company’s Series A was co-led by Hedosophia, with participation from Seed Capital Denmark, which has been involved since the seed stage and continued participating through the Series B.

Flatpay bundles the entire in-person commerce stack into a single offering that arrives pre-configured and ready to use. The company ships payment terminals, POS software, cash drawers, receipt printers, and provides on-site installation with staff training.

The Terminal plan centers on a PAX A920 Pro Android card reader that merchants simply plug in and connect to Wi-Fi. This device handles card payments, receipt printing via email or paper, refunds, daily reports, and stores the last 500 transactions locally.

The Basic POS plan adds a Lenovo tablet running Flatpay's POS software alongside the card reader, cash drawer, and printer. Merchants can build product catalogs with photos, manage table service, split bills, apply discounts, scan barcodes, toggle between dine-in and takeout modes, and access comprehensive reporting. Optional add-ons like kitchen printers and handheld barcode scanners connect through the built-in Network Manager.

The Premium POS upgrades to a counter-top CPOS X5 touch terminal for higher-volume venues, maintaining the same software capabilities with more robust hardware. All plans include a cloud-based merchant portal accessible via browser or directly through the POS system, showing real-time sales data, payout schedules, and item-level analytics with 24/7 phone and chat support.

Flatpay also offers online payment processing through checkout widgets and REST APIs, with ready-made plugins for Shopify, PrestaShop, OpenCart, VirtueMart, and other e-commerce platforms. The online and offline systems integrate to provide unified reporting and daily payouts to merchant bank accounts.

Flatpay operates a B2B model targeting brick-and-mortar SMBs with a flat-rate payment processing structure that eliminates monthly fees and setup charges. The company deliberately focuses on single-location businesses processing over €100,000 in annual card volume, rejecting smaller merchants and multi-location chains to maintain unit economics.

The core monetization comes from payment processing fees: 0.99% on the Terminal plan and 1.49% on POS plans for in-person transactions, plus 0.99% for EU online payments and 1.99% for non-EU cards. This transparent pricing model contrasts with traditional payment processors that layer on monthly fees, setup costs, and variable interchange rates.

Flatpay's cost structure includes hardware procurement, payment processing infrastructure, and significant upfront investment in white-glove service delivery. The company provides on-site installation and staff training, which creates higher initial costs but drives customer satisfaction and reduces churn. Daily payouts to merchants improve cash flow but require Flatpay to manage working capital efficiently.

The business model creates a flywheel where satisfied merchants generate steady processing volume, and the flat-rate structure becomes more attractive as transaction volumes grow. Flatpay has begun offering custom rates for larger merchants processing over €200,000 annually, expanding addressable market while maintaining the core value proposition.

Revenue expansion comes primarily through increased transaction volume as merchants grow their businesses, plus cross-selling online payment processing to existing in-person customers. The company also offers Flatpay Capital, providing cash advances repaid through a percentage of daily card sales.

SumUp represents Flatpay's most direct competitor with a 1.69% pay-as-you-go rate in the UK and a SumUp One subscription that waives fees on payments under £10. SumUp has achieved profitability with €600 million in ARR and offers custom 0.99% rates for merchants processing over €100,000 annually, directly matching Flatpay's headline pricing.

Square charges a flat 1.75% rate in the UK with a free POS app and has introduced Tap-to-Pay on iPhone functionality that reduces hardware dependence. Square's massive scale enables aggressive custom pricing for merchants above £200,000 in annual volume, creating pricing pressure on Flatpay's expansion into larger accounts.

Zettle by PayPal charges 1.75% for card-present transactions but leverages PayPal's broader ecosystem including wallet payments, buy-now-pay-later options, and Tap-to-Pay on iPhone in Germany. The cross-channel integration compensates for higher headline fees by providing merchants with additional payment methods and customer reach.

Stripe Terminal takes a developer-first approach, rapidly expanding across EU markets while bundling omnichannel APIs, financing through Stripe Capital, and over 125 local payment methods. Rather than competing on price, Stripe emphasizes global reach and technical flexibility, appealing to merchants with complex integration needs.

Nexi SmartPOS Cassa+ in Italy offers a €29 monthly all-in-one cash register and POS system with zero commissions on payments under €10, specifically designed for 2025 fiscal compliance requirements. This government-driven compliance creates switching friction that Flatpay must overcome in Southern European markets.

Adyen focuses on enterprise and mid-market merchants with unified commerce capabilities across online, in-store, and mobile channels. While not directly competing for Flatpay's SMB target market, Adyen's comprehensive platform appeals to merchants as they scale beyond Flatpay's sweet spot.

Flatpay launched online payment processing in 2025 with zero monthly fees and 0.99% rates for EU cards, positioning to capture existing merchants' e-commerce volumes that currently flow to Stripe, Adyen, and PayPal. The plug-and-play integrations with Shopify, WooCommerce, Magento, and eight other platforms enable unified offline-plus-online acquiring.

The company is developing AI-assisted sales analytics and value-added financial services including working capital advances and buy-now-pay-later at the point of sale. These products leverage transaction data from existing merchants to provide personalized insights and financing options.

Flatpay Capital offers embedded cash advances with pre-approved offers surfaced in the merchant portal, funds delivered in 5-8 days, and automatic repayment through a percentage of daily card sales. This creates additional revenue streams while deepening merchant relationships.

Flatpay now offers custom rates for merchants processing over €200,000 annually, unlocking mid-market verticals like fast-casual chains and specialty retail that were previously outside the flat-rate model. This expansion maintains the core value proposition while addressing larger merchants' needs for negotiated pricing.

Self-serve onboarding for mobile terminals and e-commerce plugins provides entry points into micro-merchants and creator commerce, an under-penetrated segment of over 10 million businesses across the EU. The simplified setup process reduces acquisition costs while expanding the addressable market.

The company targets the 24 million SMBs across Europe using 17 million POS terminals, representing significant headroom for market share expansion beyond the current 50,000 merchant base.

The Series B funding finances entry into additional EU markets, with Flatpay now operating in Denmark, Finland, Germany, Italy, and France. The company plans to hire 250 sales representatives over the next 12 months to accelerate expansion.

The in-person installation playbook can be replicated in Spain, the Netherlands, and the UK, markets representing over €600 billion in annual card volume. Flatpay's white-glove service model creates competitive differentiation in new markets where local competitors may rely on self-service setup.

Regulatory tailwinds including the EU Digital Markets Act forcing Apple to open iPhone NFC create opportunities for SoftPOS expansion, potentially reducing hardware costs while maintaining the integrated service experience.

Margin compression: The emergence of free SoftPOS apps and Tap-to-Pay functionality on smartphones eliminates hardware barriers that previously protected payment terminal providers. As merchants gain access to sub-1.5% processing rates through smartphone-based solutions, Flatpay's 0.99-1.49% rates face downward pressure, particularly for price-sensitive micro-merchants.

Scale disadvantage: Larger competitors like Square and SumUp can leverage massive processing volumes to offer custom rates below 0.99% for high-volume merchants, while their established market presence enables aggressive pricing to defend market share. Flatpay's smaller scale limits its ability to match enterprise-level pricing while maintaining profitability.

Regulatory fragmentation: European payment regulations vary significantly across markets, requiring country-specific compliance for features like fiscal receipt requirements in Italy or data localization rules in other jurisdictions. This regulatory complexity increases expansion costs and creates barriers to the standardized product approach that drives Flatpay's unit economics.