SumUp survey finds cost of living crisis putting more pressure on Irish businesses than European counterparts

A Europe-wide survey, conducted by SumUp, the fintech company providing services to over 4 million companies worldwide, shows that businesses in Ireland are feeling the pressure of the cost of living, particularly leading up to the Christmas period. From the pool of over 500 respondents, 26.5% believe that their customers would spend less money this past holiday season due to the rising cost of living. 27.1% of businesses in Ireland note that the greatest detriment to their businesses over 2024 has been the higher cost of everyday living.

This constitutes a higher percentage than in any of the other countries surveyed – only 23.5% of those surveyed in Italy believe this to be the primary cause of lower business performance, and similar findings were seen across France (22.9%) and the UK (21.8%), while in Germany the percentage drops to 17.3%.

Business owners across Ireland also predicted that the search for discounts or special offers would increase, with 17.6% noting as much, and 10.8% of respondents stating that they felt that customers would halt their purchasing of certain products based on the piece point. In spite of this overall negative outlook, some business owners remained optimistic about spending habits, with 11.1% believing that shoppers would be more willing to put their hands in their pockets over the holiday season.

Unsurprisingly, following the cost-of-living as the biggest challenge faced by Irish businesses over the course of 2024, respondents noted energy costs (16.9%), the cost of supplies (16.3%) and the decrease in customers’ purchase power (14.7%) as the leading causes of disruption in their business operations. To offset these challenges, businesses have been looking towards a variety of measures to combat soaring energy costs and economic uncertainty. The survey further revealed that almost one third of Irish businesses (31.5%) have already implemented changes to tackle rising costs, with a further 23% considering doing so in the future.

The most common change made by such businesses has been the increase of prices of the products or services supplied (28.8%); 18.1% of respondents also shared that they replaced higher-quality products with cheaper alternatives to ease the cost, in addition to 15% of business owners reducing their own salaries to help make ends meet. These measures far outnumber the more drastic alternatives, with only 3.8% noting a reduction in workforce, and 0.4% having closed one or more stores/branches. These figures are lower than other European countries surveyed, with a decrease in staff being noted by 9.8% merchants in the UK, 9.2% in Germany, 7.1% in Italy, and 6.7% in France, highlighting the durability of Irish merchants.

In order to remain competitive in the current commercial landscape, technological innovations remain paramount. Primary benefits seen by merchants in these times include the availability to increase online visibility to attract new customers (23%), the reinforcement of customer loyalty (19%), and to save time and increase productivity (18.9%). Looking at Generative AI, findings from this survey also show that the main uses of this technology are content creation for businesses’ websites, social media and marketing (27.4%), to better understand customers expectations (17.3%) and the running of targeted marketing campaigns (14.4%).

Despite these changes to customer behaviours and business functions, businesses across Ireland remain resilient – almost half of all respondents (49.3%) stated they are confident that their business will improve over the course of 2025. While remaining optimistic about maintaining smooth operations, the relentless rise in everyday costs, as illustrated by these findings by SumUp, suggests that further adjustments will likely be necessary for businesses that have not already adapted. In the face of such challenges, SumUp, a leading global fintech providing financial services to over 4 million companies worldwide, is continuing to update and adapt its offerings to support businesses.

Niall Mac an tSionnaigh, CEO of SumUp Limited commented: “We know that businesses are struggling with the rising cost of everyday life, but we also know that small merchants make up the fabric of many communities, offering goods and experiences that bigger enterprises cannot offer. While sentiment for 2025 looks to be on an upward trajectory, SumUp remains committed to empowering businesses across Ireland, offering them a suite of services to make running a business that much simpler in all times.”

Late 2024 saw SumUp expand its Cash Advance offering into the Irish market, in a move that underscores the company’s commitment to delivering merchants with tools based on the evolving consumer landscape. First launched in the UK in 2020, and now available for Irish businesses, this offers merchants a possible financial advance of up to €20,000 with transparency and ease.

This launch rounded off SumUp’s major achievements in 2024, such as surpassing 1 billion transactions per year and announcing that over 1 million customers are now using a SumUp Business Account. SumUp’s emphasis on the Irish market was further highlighted by its appointment of high-level leadership in the Dublin office, including Niall Mac tSionnagh as CEO, Alastair Nolan, who joined as SumUp Group’s CFO Europe, as SumUp Limited’s Head of Finance, and several board members.

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