Payment giant Paypal to acquire Fintech startup iZettle for $2.2 billion

Lloyd Doyle
May 18, 2018

PayPal is buying financial services startup iZettle for $2.2 billion to expand its digital payment service into thousands of brick-and-mortar stores in Europe and Latin America.

Sweden-based iZettle started out providing card readers to small businesses, making its mini white readers recognisable in many independent shops and cafes.

The deal will enable PayPal to expand its presence in in-store payments globally, and will mark the largest-ever acquisition by the USA fintech giant, Reuters reports. "With almost half a million merchants on their platform, Jacob de Geer and his team add best-in-class capabilities and talent that will expand PayPal's market opportunity to be a global one-stop solution for omnichannel commerce".

The company has a presence in 11 countries and offers other services for small businesses such as lending.

PayPal is preparing to take over Swedish payments app iZettle, just a week after it announced plans to float.

Paypal Holdings Inc shares were trading at $79.09 per share on Thursday afternoon, up $1.27 (+1.63%).

"Small businesses are the engine of the global economy and we are continuing to expand our platform to help them compete and win online, in-store and via mobile", PayPal President and CEO Dan Schulman said in a press release.

The Stockholm-based startup founded in 2010 expected to handle about US$6 billion in transactions this year, taking in gross revenue of approximately US$165 million in the process. The company went public at 21.50 in January, reached 38 on March 23 and has since dropped out of the IBD 50. However, all of them will be now reporting to Paypal's COO Bill Ready. The two companies will continue to operate independently until close.

Other reports by Iphone Fresh

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