A price comparison platform that assists small businesses in evaluating the cost of payment services is in the process of raising millions of pounds to support its expansion. It has been reported that Tuza, launched in September of last year, has secured £4m in seed capital from investors led by Connect Ventures. Northzone, a primary investor in Spotify, also participated in this round, along with Triple Point and Entrepreneur First.
Tuza, which had previously raised £1.5m in pre-seed funding almost a year ago, is determined to address the inertia among SMEs in the £205bn payments sector. According to statistics, over 90% of small companies continue to use the same payment provider for more than a year, regardless of the rates available elsewhere. In an effort to combat this trend, Tuza utilizes pricing technology to display rates from providers such as Barclaycard, Revolut, and Worldpay online. Since its launch eight months ago, the platform has compared £1.5bn in SMEs’ card turnover.
Based on its data, a typical corner shop could potentially save over £5,000 per year by switching payment providers. Tuza’s chief executive and co-founder, Ed Hardy, stated, “Our latest round of investment emphasizes the urgency of our mission. Businesses should not have to endure high costs due to a lack of understanding about where or how to find better deals. Our platform offers immediate, transparent access to the best solutions for each business. Not only does it save time, but it also introduces a level of pricing fairness that was previously unseen in the industry.”
Tuza referenced research that suggests two-thirds of merchants are unaware of how much they pay in transaction fees. With a goal of reaching 100,000 merchants on its platform, Tuza is determined to change this trend. Rory Stirling, a partner at Connect Ventures, stated, “Tuza’s approach not only simplifies the complexities of payment processing, but also empowers UK businesses with unprecedented transparency and control. Finally, the days of unclear pricing structures and laborious comparisons are a thing of the past, marking a significant advancement for the industry.”
