PayPal, the US online payment service, confirmed the finalization of its buyout of Swedish mobile payments startup for $2.2 billion.
This is simultaneously the biggest acquisition in the company’s history.
The significance of the deal
The deal with help PayPal spread its presence in 11 markets across Europe and Latin America. The deal is a part of PayPal’s strategy to augment its footprint in Europe and gain more presence in the offline commerce.
“We’re thrilled to welcome the iZettle team to the PayPal family and are excited to expand the ways we serve our small business customers. iZettle brings a suite of products and services that allows merchants to meet their customers where they are – online, in store ir via mobile. This is another step in our journey toward democratizing commerce tools to help businesses of all sizes thrive,” said Bill Ready, chief operating officer at PayPal.
“Today is a very big day – for me and for everyone at iZettle. We share PayPal’s strong belief in the power of small business. Together, we will be stronger and move even faster to help small businesses succeed in a world of giants,” said Jacob de Geer, co-founder and CEO of iZettle.
PayPal and iZettle brands and operations will remain separate, as agreed with the CMA.
PayPal is currently facing strong competition, as companies like Samsung and Apple are improving their payment offerings.
Launched in 2010, iZettle is a financial technology company which changed the world of mobile payments with the world’s first mini chip card reader and software for smartphones.
Calling iZettle the “Square of Europe” is the simplest way to describe its business. The main goal of iZettle is to provide tools to help small businesses. Besides iZettle Reader, company also provides point of sale services, which include invoicing, POS software, and eCommerce tools.
Recently, iZettle launched its new e-commerce platform, which enables small businesses to effortlessly set up and customize a new webshop or sell their goods acroos multiple online channels.