German start-up SumUp is looking to deepen its relationship with its target market of small entrepreneurs by moving beyond processing payments, according to a Mobile World Live interview with co-founder and managing director Stefan Jeschonnek (pictured).

The firm has launched its existing service in a number of European markets, enabling businesses to accept card payments via a smartphone or a tablet. The service is aimed at small outfits such as cafes or shops who previously found setting up a card payment system expensive and cumbersome. Payments are handled by attaching a card reader to a mobile device.

But now SumUp is looking at a broader range of services. “We are trying to engage with the question of how to run a small business. So many questions small businesses have to answer such as ‘How do I handle a cash register?’or “How do I let people know about my business?’”, said Jeschonnek.

“We want to be the hub of that ecosystem,” he added.

The firm recently started a trial of a new service in Germany designed to address the cash-register question: a small business can purchase a starter pack from SumUp that includes a preconfigured iPad (for use as a cash register) and router that takes less than 15 minutes to set up.

Another idea is how to speed up transactions for small businesses. Jeschonnek talks about a location-sensitive system whereby a customer signs up and uploads their card details and photo. When they enter a shop or cafe, they are then recognised and a payment is taken automatically, which is a much quicker process than typical transactions today.

SumUp might also use its sought-after status as a hub to offer third-party services to small businesses. “We don’t have to do everything ourselves,” said Jeschonnek, pointing out that the firm would receive compensation as the provider of a platform which delivers access to small businesses. Loyalty cards, says the start-up’s founder, are an example of the kind of services that might want to use such a platform.

Becoming a hub is a way for SumUp to differentiate itself too in what is becoming an increasingly commoditised market for mobile point-of-sale systems. The likes of iZettle, Payleven and mPowa – plus others – are active in Europe. And Square, the biggest name, has not even launched in Europe, at least so far. Its entry, should it ever happen, would make competition even tougher.