PayPal acquires iZettle in biggest acquisition ever

PayPal in deal to buy iZettle one of Europe's best known financial technology startups for $2.2 billion

Today, small-business owners around the world use iZettle's powerfully simple services to improve the speed and ease of payments at checkout, business management, sales analytics, customer engagement, and funding.

PayPal president and chief executive Dan Schulman said: "Small businesses are the engine of the global economy and we are continuing to expand our platform to help them compete and win online, in-store and via mobile".

PayPal already have a card reader, but where iZettle are strong is their in-store expertise, digital marketing strength and mobile point-of-sale technology.

- Jacob de Geer, CEO & co-founder, iZettle " Jacob and his team bring best-in-class capabilities and talent that will expand our tremendous market opportunity.

Upon closing of the deal, PayPal will gain in-store capabilities in Brazil, Denmark, Finland, France, Germany, Italy, Mexico, Netherlands, Norway, Spain and Sweden.

USA -based PayPal already operates in more than 200 countries around the world but is working to expand its offerings.

The Stockholm-based startup founded in 2010 expected to handle about US$6 billion in transactions this year, taking in gross revenue of approximately US$165 million in the process.

For 2018, iZettle expects to generate gross revenues of United States dollars 165 million, and to process USD 6 billion worth of total payment volume (TPV) on its platform. The company forecast reaching EBITDA profitability by 2020 on a standalone basis.

Nasdaq-listed PayPal, which was previously part of the same company as the online auction site eBay, is a giant in the sector, disclosing in its first-quarter results last month that it processed $49bn in mobile payments during the three months to 31 March.

Neither PayPal nor iZettle would respond to requests for comment on Thursday evening. He was convinced that his company could continue to grow substantially under the new owner and that their cultures would be aligned.