PayPal, one of the favorites in digital payments in the US, is all set to buy the startup named iZettle, a European payment company.
With an outreach towards global trade, the takeover would be a competitive one in the digital world, as transactions that are being done in the digital mode and through mobile phones are increasing at a very fast speed.
The US has been acquiring many of the leading start-ups from Europe but this is a first from PayPal.
iIZettle had been doing well in Stockholm and gaining footage as a growing startup. Though it started with digital payments, it soon expanded to analytical software and financial lending. Through iZettle, PayPal can extend its offline trade in various parts of northern Europe and in Latin America too. With this step in the European market, PayPal will be able to compete with Square.
Square and Stripe have been competing with PayPal on the digital payment front, and with PayPal’s expansion in the international market, competition will be increasing to gain a higher market share.
Amanda Miller, the PayPal spokeswoman, has confirmed the deal with iZettle, the payment company from Stockholm. The deal has been done for $2.2 billion as a cash transaction, say sources.
Dan Schulman, the CEO and president of PayPal, is happy with the purchase of iZettle, as he feels that this shared venture will open market opportunities in the in-store, mobile, and online platform.
iZettle’s CEO and co-founder Jacob de Geer is said to continue to remain in Seattle. Others from the executive board will also continue with the company to develop the company in Europe on all fronts such as offline payments and in-store too.
PayPal had earlier acquired Xoom, another startup in money-transfer in the year 2015 and the Venmo business from Braintree in the year 2013.