PayPal Bought iZettle and here's the reason Why?
bought Stockholm, Sweden-based payments start-up iZettle for $2.2 billion.
IZettle "spent roughly a year" trying to achieve a stock market listing, CEO Jacob de Geer said.
PayPal COO Bill Ready
said the move is about increasing its payments presence among physical retailers.
, a versatile Swedish facility where the money from the cards went to private companies, for 2.2 billion dollars (1.6 billion).
PayPal stock jumped nearly 2% when reports of the deal first surfaced.
The acquisition "significantly expands PayPal's in-store presence, strengthening PayPal's platform to help millions of small businesses around the world grow,"
CEO Dan Schulman
said in a statement.
Based in Sweden, iZettle has built a presence in Europe and South America that will allow PayPal to bring its platform to nearly 500,000 stores in 11 new countries including France, Germany, Brazil, and Mexico.
What is iZettle?
iZettle is a rival to Square, the U.S. Fintech firm led by Twitter CEO
, but only competes directly with the $21 billion company in the U.K.
The company makes small, wireless chip readers along with a number of other payment processing products. It recently launched a new product that lets small businesses build their own online stores.
The acquisition means that iZettle will no longer be seeking a listing of its own, something it "spent roughly a year" trying to achieve, according to Jacob de Geer, the firm's chief executive.
This migration gives the internal PayPal store when the online installer is in progress. I said it would be three weeks that there would be a list of actions in Stockholm. At the moment, the company said the publication will help to raise money.
Why did PayPal buy iZettle?
For PayPal's Chief Operating Officer Bill Ready, the move is about increasing its payments presence among physical retailers.
"This phenomenon of in-store payments via mobile for small businesses, it's a global phenomenon and there have been many players in the space. "Most of them though have been constrained to one or only a few countries."
iZettle is currently present in 12 countries in Europe and Latin America, while PayPal operates in more than 200.
Ready said that, following the deal, PayPal would look to expand iZettle's international presence further. "What I think is quite distinctive about this team is their ability to go serve small businesses on a multinational basis," he said.
PayPal President Dan Schulen said: “This mix combines brand quality and computerized marketing with the appearance of the store’s internal capacity, PayPal’s global scale, portable and online installation aspect, and confidence can be bad.”
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