PayPal to buy Swedish payments group iZettle for $2.2bn

PayPal President and CEO Dan Schulman

Spencer Platt Getty Images

PayPal is swooping for Swedish payments start-up iZettle in a $2.2bn (£1.6bn) all-cash deal, as it seeks to create a "one-stop shop" for transactions.

Based in Stockholm, iZettle was founded in 2010 by Jacob de Geer and Magnus Nilsson with a mission to help small businesses "succeed in a world of giants" by levelling the playing field against bigger retailers. The chip-card reader and its app for smartphone-based mobile commerce meet worldwide security standards. iZettle's service is available in 12 countries which includes United Kingdom, Finland, Denmark, Germany, Italy, Netherlands, Spain, Italy, Germany, and Brazil, among others.

Announcing the takeover, the companies said that by joining forces with PayPal, iZettle would be able to accelerate its worldwide expansion including to the US.

De Geer will continue to lead iZettle, reporting to PayPal's COO Bill Ready, and will be joined by the rest of the iZettle management team. "Together, we will help small businesses around the world grow and thrive in the global digital economy".

This Country, Three Girls Each Score Two BAFTA TV Awards
It told the harrowing story of the children who were groomed, sexually abused and trafficked by British Pakistani men in Rochdale. John Motson was honored with a special award on the same day he retired from sports commentary.

Petrol Costs Over Rs 75 per Litre In Delhi Today
The government has no role in the fuel price hike except for the extra tax levied by respective state governments. The oil companies set the prices of petrol and diesel depending upon the price of crude oil in the global market.

New Whitney Houston Documentary Alleges Sexual Abuse
The first official trailer for Whitney has arrived and it's packed with information about the late, great, icon, Whitney Houston . Dee Dee is said to have struggled with narcotics addition and died in 2008 , aged 63.

The move boosts PayPal's in-store presence at a time when competition in the online payments sector is increasing.

Paypal's acquisition of iZettle has also come at a time when the latter has already filed for an IPO in the Stockholm stock market for raising almost $227 million.

The deal is going to add value to PayPal and help them expand to new markets, a sentiment Dan echoed in his statement, "Jacob and his team bring best-in-class capabilities and talent that will expand our tremendous market opportunity". Today, the company's commerce solutions empower almost half a million merchants across 12 countries and two continents to get paid, sell smarter and grow their businesses.

Upon closing, PayPal gains in-store capabilities in the following 11 markets: Brazil, Denmark, Finland, France, Germany, Italy, Mexico, Netherlands, Norway, Spain and Sweden. The company forecast reaching EBITDA profitability by 2020 on a standalone basis.

Latest News