Flatpay's smaller scale limits pricing

The real constraint is not just fee matching, it is that Flatpay still has to pay for sales reps, installation, hardware, and support out of a much smaller processing base than Square or SumUp. Flatpay charges 0.99% on terminal payments and 1.49% on POS plans, while also sending staff on site and targeting merchants above €100,000 in annual card volume. Larger rivals can spread similar fixed costs across millions of sellers or far more payment volume, then use custom pricing to win bigger accounts without breaking margins.

• Flatpay is still early in scale. It was founded in 2022, has raised about $76.6M, and serves about 50,000 merchants across five European markets. That is enough to build a strong SMB sales machine, but not enough volume to routinely underwrite enterprise style discounts.
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• SumUp shows what scale changes. It serves more than 4 million SMBs across 36 countries, reached about $600M in annualized revenue in 2025, and has stayed EBITDA positive since December 2022. At that size, it can offer custom 0.99% rates for merchants above €100,000 and still support banking, lending, and software products around payments.
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• Square has even more room to flex on price. In the UK it advertises custom transaction pricing for businesses processing more than £200K annually, and Block reported Square GPV of $209.6B in 2023. That volume gives Square more bargaining power with banks and networks, and more gross profit dollars to subsidize hardware and software bundles.
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The next step is clear. Flatpay needs to turn payments into a wider merchant relationship, with online checkout, capital, and software, so margin comes from more than the take rate on each card swipe. If it can raise revenue per merchant before competitors drag pricing lower, it can move upmarket without losing profitability.