Here’s a growth story that feels almost unreal at first glance. Flatpay, a Danish payments startup serving small merchants across Europe, has reached a valuation of about €1.5 billion. It’s a big moment for a company that has built its reputation on simple pricing, fast onboarding and a bit of old-school, in-person sales energy.

What Flatpay is actually doing

Flatpay focuses on small and medium sized businesses. Cafés, salons, bakeries, corner shops. The kinds of merchants who usually deal with complex pricing sheets and confusing fee structures from traditional players.

Their pitch is straightforward. One flat transaction rate. No mystery surcharges. No small print that sends people looking for aspirin.

The formula is working. The merchant base jumped from a few thousand to tens of thousands within roughly a year. Revenue climbed just as fast. The company recently passed €100 million in annual recurring revenue and is adding close to one million euros per day.

To keep up with demand, Flatpay raised a sizeable funding round and now plans to double its workforce, deepen its footprint in existing countries and enter more European markets in 2026.

Why this story matters

Flatpay made a set of choices that look almost obvious in hindsight. They picked a segment that is huge, underserved and usually ignored by shiny fintech narratives.

Their pricing is easy to understand. A merchant can look at it once and know what they will pay. That alone builds trust.

They also kept sales very human. They meet merchants face to face, show the terminal, answer questions and leave people with a sense that support is nearby. It is not the typical hyper automated fintech play, but it works for this audience.

Another reason the company stands out is its willingness to prioritise scale before profitability. It is a risky route. It requires absolute confidence in execution and the patience of investors. But if a company manages to combine heavy growth with strong retention and a healthy cost structure, the upside can be substantial.

The challenges ahead

Growth is impressive, but the next stage is harder. Running a hands-on sales model across multiple countries becomes expensive. Every market has its own rules, payment habits and hardware logistics.

Competition is not gentle either. Large European and global providers already operate in the same space and can move aggressively if they see an opportunity.

And then there is the pressure of expectations. A valuation of more than a billion creates a scoreboard of its own. Hitting hundreds of millions in ARR within the next year will require almost perfect execution.

Key takeaways for fintech startups

Here is a short set of lessons founders can adapt to their own situation:

• Pick a segment you truly understand and commit to it.
  
  
• Keep pricing simple. Clarity is often more powerful than cleverness.
  
  
• Use human contact where it matters. Not everything needs to be automated.
  
  
• Treat rapid scaling as a trade-off. Growth brings visibility and momentum, but also operational and financial pressure.
  
  
• Expand step by step. Market by market, with real insight into local behaviour and regulation.

If you are shaping your own fintech growth plan and want to understand how to scale in a realistic, structured way, Your Fintech Story can help. Reach out and we can explore the path that fits your product and market.