iZettle is the Swedish producer of the devices (mPOS-terminals) which are synchronized with smartphones for reading bank cards. By May, 2018 the financial technical-startup is present at 11 countries where also offers different services for small business, for example, services of crediting and money transfers.
History
2018: PayPal buys iZettle for $2.2 billion
On May 17, 2018 PayPal announced purchase of iZettle for $2.2 billion. This acquisition became the largest in the history of the American payment system.
According to the president of PayPal Dan Shulman, this transaction will allow to integrate experience of iZettle in work with small business and reliability of PayPal which activity has global scales. The purpose of PayPal — to provide the complex offer for retailers who want to conduct sales as in traditional shops and online, he noted.
Sale of iZettle it was announced slightly more than a week later after the company announced plans to go public at the end of May or the beginning of June, 2018. Within the IPO the Swedish startup expected to attract about $230 million and to receive assessment of market capitalization at the rate from $1.1 billion.
One of founders and the CEO of iZettle Jacob a degeer says that during creation of the company it was not going to be sold, however the transaction with PayPal, according to him, will become in "the great way to continue development of the ideas". iZettle hopes to accelerate the international expansion, including in the American market, having combined efforts with PayPal.
Jacob Degeer will continue to direct iZettle and will report to the operating officer of PayPal Bill Redi.
Absorption of iZettle will help PayPal to compensate reduction of cooperation with one of the largest sources of clients and income for the company — eBay. At the beginning of 2018 eBay was made by Adyen the main payment system eBay instead of PayPal, however visitors of eBay will be able to pay purchases through PayPal at least till July, 2023.[1]
Notes
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