British app-based POS startup Lopay has raised £6 million in a seed funding round joined by BackedVC, Portage and The Venture Collective.
Founded early last year, Lopay claims to have already signed up more than 20,000 small businesses and been used for nearly 10 million payments.
The company claims to charge less than half the price of rivals SumUp and Zettle while giving firms the ability to receive cleared funds straight after transactions.
Clients can either take payments with an Android phone, a card reader or a touchscreen terminal, while the app also lets users manage team access, view reports and check stock levels.
Richard Carter, founder, Lopay, says: “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.
“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."