The Chilean payments firm aims to reach one million users in Latin America before the end of the decade. The principle behind its goal is the same one that guides the entire fintech sector : mass financial inclusion.
Issuing electronic receipts and invoices, inventory management, online and in-person payments, operation with and without an Internet connection are some of the free solutions that the TUU brand provides to different companies through its POS or Point of Sale payment terminal.
All with the aim of democratising access to advanced and affordable payment tools for entrepreneurs and small merchants in Chile, with ambitious expansion plans throughout Latin America.
The story of payments company TUU is closely tied to the personal experience of its CEO, San Feng, who grew up observing the everyday challenges of retail.
"I grew up watching my dad at the cash register, my mom pricing products. I did it myself as a kid," says Feng, who would later become the family store's first IT facilitator.
This personal experience would shape the vision behind TUU.
"The purpose of the TUU brand is to provide a solution to small businesses and our word here has always been, how can we make small businesses big? And that's where the TUU brand came from, because we want a small business to be able to move like a big one, for small businesses to compete head-to-head with the big ones," explains Feng.
TUU’s story began more than a decade ago when Feng founded Haulmer, the parent company. “I initially started Haulmer alone, during my senior year of college,” Feng recalls.
The first product was a web hosting service , but the vision of helping small businesses was always present, inspired by his own family experience as immigrants arriving in a new country to build a business from scratch.
Today, Haulmer provides a range of digital solutions, with TUU POS as one of its flagship products. It is made up of four partners: San Feng as CEO, Juan Manuel Parragués as CTO, Miguel González as product manager and Enrique Álvarez as Chief Revenue Officer. Feng studied at Brigham Young University in the United States, while his partners are graduates of the Universidad Federico Santa María in Chile.
Without hesitation, TUU's business began operations in 2021, and already has more than 20,000 clients in Chile, aspiring to reach 40,000 users by the end of this year. However, their ambition goes much further: they plan to reach one million users throughout Latin America before the end of the decade.
The key differentiator of this POS terminal lies in its comprehensive service approach, according to its creator.
"More than a payment process, TUU is what we call an all-in-one. It has additional tools for the business, to help the business be better managed. It has an option to create your catalog, manage your inventory, print electronic documents, and we have just launched a reservation platform to better manage businesses that operate through reservations, such as hair salons or veterinarians," Feng explains.
A distinctive aspect of TUU's business model is its simplified commission structure, where fees vary between 1.99% and 0.98% of sales plus taxes (in this case VAT), depending on the subscription days chosen by the user.
"We were pioneers in Chile in offering a single commission, thus simplifying a process that was previously complex and opaque for businesses. Previously, companies had to deal with multiple commissions: a fixed one per transaction, a variable one depending on the type of card, the monthly rental cost of the POS machine, and additional payments for the issuance of receipts and invoices," Feng points out.
Cost simplification has been fundamental to its value proposition.
"Businesses that receive payments with TUU pay the same variable commission to receive debit, credit and prepaid transactions, with no additional costs. We see this as a huge benefit, as it allows them to save on card sales commissions and allocate more resources to other aspects of their business, such as improving their products or services, investing in marketing, and even expanding," explains the founder .
GROWTH AND BREAK EVEN
To reach small businesses across the country, TUU has developed a network of over 400 distributors. This distribution model allows them to offer a personalized service and maintain a presence in various geographic areas, preparing for eventual international expansion. Distributors come from diverse backgrounds , from experienced field salespeople to more technologically-savvy professionals who have developed commercial skills.
The company has achieved its growth through a bootstrap model , constantly reinvesting its profits into business development.
"What we've actually done when we've gone through break-even is we don't let much go by and we immediately reinvest," Feng explains about his growth strategy. "As each way of seeking capital has its pros and cons, I think the positive thing we've achieved from bootstrapping is that in the end you have to create certain capabilities to be able to generate value in a very efficient way and grow in a very organic way."
TUU offers three types of devices: the Mini, Mini S and SE, each designed for different business needs. All terminals accept a variety of payment methods, from magnetic stripe cards to contactless payments, and can operate even without an internet connection.
The platform also facilitates the issuance of electronic tax documents, inventory management and online payments, all integrated into a single system. Unlike other providers, TUU does not lease its terminals, but rather merchants become owners of the devices.
At the beginning of August, for example, its platform created the “TUU Reserva” service, so that small businesses can increase efficiency within their operations.
“This solution allows you to create a booking page where customers can schedule their appointments with businesses. It also enables you to send appointment reminders, receive online and in-person payments, and includes electronic billing,” explains San Feng.
Looking ahead, the company is working on expanding its services to include other payment methods besides cards, recognizing the importance of bank transfers in today's payment ecosystem.
"What we want is to be able to organize and help the business, so that means organizing it in all its facets, and we have detected that we have future products that will receive payments that are not necessarily a card, because they are received by transfer, it is a reality in business," Feng says.
Transforming small businesses through technology is the driving force behind TUU, which believes that the evolution of Smart POS has driven the development of more advanced and intelligent systems.
The profile of TUU's target customer is clear for Feng: "We want to help that person who is in business, who dared to start a business, who has to fight every day to open his business and manage it. Because normally he is an entrepreneur, a salesman, a cashier, an accountant, he does it all (Chilean idiom)."
"This passion to be able to help these small businesses through technology, which is what I did... And that's why I also think we've done so well with TUU, because we help entrepreneurs become the great businessmen of the future," Feng reflects.
