Despite a global decline of nearly 50% in VC funding for the initial half of 2023, European startups faced a substantial 69% decrease. However, breaking this trend, Lopay, a London-based fintech specialising in instant payments, has managed to secure a substantial £6 million in seed funding within just 18 months since its inception. The funding was provided by notable investors such as London-based VC firm BACKED (previously invested in Footium, Meatable and more), Portage, The Venture Collective, and a group of prominent angel investors.
Armed with this latest infusion of capital, Lopay is gearing up for an international expansion and aims to craft innovative products that deliver cost savings for small businesses (SMEs).
Seamless credit card payments
Lopay is a payment app that enables small businesses to take card payments from their customers for a fraction of the cost charged by corporate payment providers like PayPal, SumUp, and more. This British startup aims to give users more control, flexibility, and instant access to their money. Basically, the company claims that Lopay’s instant settlement and low fees are less than one-third of those charged by PayPal and half those levied by SumUp and Zettle.
As per the company’s press release, its competitive pricing has saved merchants more than £1 million in card fees. Also, it expects to process a further £500 million in card payments in the next 12 months, which will save its customers as much as £2.6 million in fees.
Additionally, users can instantly receive cleared funds in their bank account as soon as a transaction is completed. Further, they also have the option for immediate fund transfer upon transaction.
Founded in 2022 by Richard Carter, who is also the brain behind OrderPay, a prominent pay-at-table tech solution for the hospitality sector, and Payment Loyalty, a customer loyalty platform. Richard’s professional journey began at Accenture and later as a founding team member at Ecrebo, a venture-backed point of sale marketing platform.
Richard Carter, Founder of Lopay commented: “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. 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, and that’s why several of the UK’s leading industry bodies have chosen to partner with us.”
Juliette Souliman, Principal at Portage, added: “We are proud to co-lead Lopay’s seed funding round alongside Backed VC as they continue to take on the industry’s biggest players. Lopay’s founder, Richard Carter, is a forward-thinking leader, and we are thrilled to support him and the team.”
Caitlin Herling, Investor at The Venture Collective, added: “Lopay’s mission to empower SMEs through low cost processing, settlement flexibility and rewards aligns deeply with our human empowerment thesis.
