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PayPal buying iZettle for $2.2bn

(Image credit: Image Credit: Lava / Flickr)

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 (opens in new tab) 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 (opens in new tab).

"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 (opens in new tab).

Image Credit: Lava / Flickr

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.