Paypal acquires iZettle for $2.2 billion
Paypal, the online payments juggernaut has confirmed its largest acquisition in history, paying $2.2 billion for Swedish startup iZettle. One of the largest fintech startups in Europe, iZettle offers financial services for small businesses including smartphone payments.
"Small businesses are the engine of the global economy and they are increasingly demanding a partner that can provide a one-stop solution to help them compete and win online, in-store and via mobile." said Dan Schulman, Paypal's CEO.
"The combination of PayPal and iZettle brings together iZettle’s in-store expertise, digital marketing strength and mobile point-of-sale technology with PayPal’s global scale, online and mobile payments leadership and trusted brand reputation to support merchants and consumers in more ways."
The acquisition comes two weeks after iZettle announce it was planning to IPO. According to the Swedish startup's CEO, Jacob de Geer, Paypal showed serious interest in the company shortly prior to its IPO. Following the announcement, stock of the company's competitor, Square, fell 5%.
iZettle previously raised five rounds of funding from companies such as American Express, MasterCard and Intel Capital. In total, the company had raised €268 million in venture capital funding.