PayPal has agreed to buy iZettle, a Stockholm-based payment service provider, as part of a cash transaction valued at $ 2.2 billion, the company announced this week.
Founded in 2010 by Jacob de Geer and Magnus Nilsson and launched a year later, iZettle is a leading small-business trading platform in Latin America and Europe with nearly half a million merchants on his platform.
iZettle is commonly referred to as the "Square of Europe" and it is exactly the approach that PayPal is taking with the acquisition as it will seek to expand its in-store presence and compete more directly with D & P. Other payment providers like Stripe and the aforementioned Carré.
PayPal CEO Dan Schulman said that small businesses are driving the global economy and that they continue to expand their platform to help them compete with each other. and win online, in store and on mobile.
Once the deal is completed, PayPal is planning in-store capabilities in 11 markets, including Brazil, Denmark, Finland, France, Germany, Italy, Mexico, the United States and the United States. Netherlands, Norway, Spain and Sweden. We are also told that De Geer will continue to run iZettle at the end, operating the company as part of PayPal's merchant services offering and reporting directly to PayPal's chief operating officer, Bill Ready.
iZettle expects to generate gross revenues of $ 165 million in 2018 and process approximately $ 6 billion in total payments on its network. Assuming there are no unforeseen regulatory hurdles, the acquisition is expected to close in the third quarter of this year.
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