Online payments giant PayPal is buying iZettle, Sweden-based mobile payments company for a reported $2.2 billion.
iZettle is a mobile payments company that sells card-readers, primarily to small businesses. The media are saying this move essentially means PayPal is looking to ante up in the battle against Square and Stripe. TechCrunch even calls iZettle the “Square of Europe”.
It was less than a month ago when iZettle announced it would go public, with hopes that new funding would help the company grow and expand.
With this acquisition, which will be done in all-cash, PayPal will have a presence in stores in 11 markets, both in Europe and Latin America, BBC says.
"This combination brings together iZettle's in-store expertise, recognised brand and digital marketing strength with PayPal's global scale, mobile and online payments leadership, and trusted brand reputation,” said PayPal president Dan Schulman.
iZettle was founded in Stockholm in 2010, and started its business selling credit card and debit card readers you could plug into a smartphone or a tablet.
PayPal, on the other hand, started as part of eBay, but eventually split to become a standalone digital and mobile payments company. Last year, it said it had more than 200 million active customers.
“We expect to close the deal in the third quarter of 2018, at which time we will begin our integration efforts. Once the acquisition closes, Jacob de Geer will continue to lead iZettle, reporting to PayPal COO Bill Ready,” Dan Schulman confirmed.
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