PayPal buys Swedish startup iZettle for $2.2 billion

PayPal just clinched its biggest-ever takeover.The digital payments firm is buying iZettle, a European startup...

Posted: May 18, 2018 10:39 AM
Updated: May 18, 2018 10:39 AM

PayPal just clinched its biggest-ever takeover.

The digital payments firm is buying iZettle, a European startup that sells mobile credit card readers and other payment platforms, for $2.2 billion, it announced Thursday.

PayPal stock jumped nearly 2% when reports of the deal first surfaced.

The acquisition "significantly expands PayPal's in-store presence, strengthening PayPal's platform to help millions of small businesses around the world grow," CEO Dan Schulman said in a statement.

Based in Sweden, iZettle has built a presence in Europe and South America that will allow PayPal to bring its platform to nearly 500,000 stores in 11 new countries including France, Germany, Brazil and Mexico.

It will also help PayPal expand offline in the United States, United Kingdom and Australia and step up its battle with Square, the mobile payments firm founded by Twitter co-founder Jack Dorsey.

Silicon Valley giants such as Apple, Amazon and Facebook are also looking to grow in digital payments.

The companies said that iZettle CEO Jacob de Geer will continue to lead the firm he co-founded, reporting to PayPal COO Bill Ready.

The deal is expected to close in the third quarter of 2018.

PayPal's bumper acquisition comes after EBay announced in February that it would no longer use PayPal as its main payment processing partner, opting to link up with Dutch rival Adyen instead.

EBay, which acquired PayPal in 2002, spun it off in 2015 but had continued to use its services for online transactions.

Article Comments

Mason City
Clear
29° wxIcon
Hi: 31° Lo: 21°
Feels Like: 18°
Albert Lea
Clear
28° wxIcon
Hi: 27° Lo: 21°
Feels Like: 20°
Austin
Clear
27° wxIcon
Hi: 30° Lo: 24°
Feels Like: 19°
Charles City
Clear
23° wxIcon
Hi: 31° Lo: 19°
Feels Like: 14°
Rochester
Clear
26° wxIcon
Hi: 28° Lo: 22°
Feels Like: 14°
Here comes the sun
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

Steinway Piano Homecoming

Image

Teamwork key during shooting investigation

Image

Climb and Crawl Park coming to Southbridge

Image

Homeless shelter facing restraints during cold

Image

Ag in the Classroom

Image

Give to the Max

Image

MN Housing Shortage

Image

Disabled Veterans Deer Hunt

Image

Chris' PM Weather Forecast 11/14

Image

Local theatre needs your support

Community Events