Last week, PayPal announced that it has just acquired iZettle for $2.2 billion.
Just like Square or Stripe in the US, iZettle sells mobile card readers designed for use on the road by tradesman or in smaller retail stores where the hassle of getting a phone line or dedicated internet line installed just isn’t convenient. This deal could be indicating that PayPal want to muscle in now on the retail space, even though PayPal sell its own card readers called PayPal Here, which are functionally the same as iZettle’s readers but can only be used here in the UK.
In an open letter posted on the iZettle press website, Jacob de Geer – who co-founded the company and is the current CEO explains the deal with PayPal.
Today is a very big day – for me and for everyone at iZettle. Yesterday we reached an agreement with PayPal to acquire iZettle, the company I co-founded eight years ago and have lived with 24/7 since.
We’ll continue to work in much the same way we always have, just as a member of a global family with great expansion opportunities. We’ll continue pursuing our mission of helping small businesses succeed in a world of giants and our teams and culture will remain our key strengths.
Jacob de Geer – CEO & co-founder, iZettle
Dan Schulman, the current PayPal president also commented.
“This combination brings together iZettle’s in-store expertise, recognised brand and digital marketing strength with PayPal’s global scale, mobile and online payments leadership, and trusted brand reputation,”
Dan Schulman, PayPal president