PayPal agrees to buy iZettle for United States dollars 2.2 bn

Cornelia Mascio
Mag 18, 2018

The payments giant will shell out $2.2 billion for iZettle, making it PayPal's biggest acquisition ever.

PayPal has bought iZettle, a Swedish mobile payments company that sells a card-reader aimed at small businesses, for $2.2bn (£1.6bn). The acquisition sets up direct competition between PayPal and Square.

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.

Sky News has learnt that PayPal could announce its intention to buy iZettle as soon as Friday morning.

iZettle, best known for offering small payment machines to small merchants, ranks among the rivals of Square, founded by Twitter CEO Jack Dorsey.

Buying iZettle will expand PayPal's reach into shops in Brazil, Denmark, Finland, France, Germany, Italy, Mexico, the Netherlands, Norway, Spain and Sweden.

iZettle expects to earn revenue of roughly $165 million in 2018 and process about $6 billion worth of transactions on its platform, according to a press release from the two companies.

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

PayPal president Dan Schulman said: "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".

US-based Paypal was formerly part of eBay, but is now a standalone digital and mobile payments company.

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