Founded as recently as January 2022, Lopay is set to process more than £400m in payments in 2023. It says that its success is underpinned by its instant payment option and low fees. Specifically, Lopay says that its fees are less than one third of those charged by PayPal and half those levied by SumUp and Zettle.
Lopay users also have the option to receive cleared funds into their bank account the instant a transaction is made.
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Since launch, more than 20,000 small businesses across all sectors have signed up. Together they’ve used Lopay to take nearly 10 million customer payments.
Lopay: saved merchants £1m in card fees since 2022 launch
Lopay estimates that its competitive pricing has saved merchants more than £1m in card fees since launch. The company expects to process a further £500m in card payments in the next 12 months. This will equate to saving its customers as much as £2.6m in fees.
Its successful funding round comes amid a sharp slowdown in venture capital investment. Worldwide VC funding almost halved during the first six months of 2023, with investment in European start-ups plunging by 69%.
Richard Carter, Founder of Lopay said: “Lopay’s mission has resonated with thousands of small businesses and sole traders who are being squeezed simultaneously by high inflation and fragile customer demand.
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By GlobalData“Against that backdrop, the big beasts of the card payment industry have been poor champions of small business. Their high fees mean too many small firms are paying up to 300% more than they need to. Or waiting up to three business days to receive card payments from their customers.
“By contrast, Lopay’s easy-to-use app and card reader give small businesses an instant way to save money on every sale they make. More than 20,000 firms have already found that switching to Lopay is a small step that makes a big difference to their bottom line. That’s why several of the UK’s leading industry bodies have chosen to partner with us.
