FlatPay targets single location merchants

This customer filter is really a cost filter, not a market size filter. Flatpay sends people on site, installs hardware, trains staff, and pays out daily, so each new merchant comes with real labor, hardware, and funding costs. A single shop doing more than €100,000 in card volume generates enough fee revenue to repay that upfront spend, while still staying simple enough to serve with one standard setup.

• Small merchants break the model because Flatpay does not charge setup or monthly software fees. If a café only processes a few thousand euros a month, the 0.99% to 1.49% take rate does not leave much room to cover terminal costs, installation, support, and payment infrastructure.
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• Multi location chains have the opposite problem. They usually want negotiated pricing, custom integrations, centralized reporting, and rollout support across stores. That pushes Flatpay toward lower margin enterprise style sales and service work, where Square, Stripe, Adyen, and large acquirers are stronger.
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• The sweet spot sits between those ends. SumUp also offers custom 0.99% pricing for merchants above €100,000 in annual volume, and Square charges 1.75% in the UK while pushing Tap to Pay on iPhone. That makes the best Flatpay customer a solid volume local merchant that wants simple pricing and hands on setup.
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Over time this focus should produce a dense base of profitable neighborhood merchants, then give Flatpay room to move upward into larger accounts with custom pricing and adjacent products like online payments and cash advances. The same discipline also keeps the company out of the least attractive ends of the market, where either volume is too low or service demands are too high.