Paypal acquires Swedish fintech startup iZettle for $2,2 billion

Kelley Robertson
May 18, 2018

PayPal has agreed to buy Swedish payments group iZettle for $2.2bn, in a deal that will "significantly" expand its in-store presence.

Founded in Stockholm in 2010, iZettle started out selling credit and debit card readers that could be plugged into smart phones and tablets.

Up to now, although it has a limited presence in the area of point-of-sale, it doesn't have the same infrastructure of its potential rivals, whereas iZettle is becoming increasingly popular for pop-ups, markets and small businesses where a landline connected merchant is less appealing.

Announcing the takeover, the companies said that by joining forces with PayPal, iZettle would be able to accelerate its global expansion including to the US.

IZettle expects to generate gross revenues of approximately $165 million Dollars in 2018, with approximately $6 billion USD of total payment volume (TPV) expected to be processed on its platform. "Together, we will help small businesses around the world grow and thrive in the global digital economy". PayPal have seen some growth in this area but there is a lot of competition in the space with everyone from Square to Etsy offering solutions.

"Combining our assets and expertise with a global industry leader like PayPal allows us to deliver even more value to small businesses to help them succeed in a world of giants", de Geer said.

The current CEO of iZettle, a company based on Stockholm, will report to the PayPal CEO and both companies want to improve the technological aspects of offline payments in many parts of Europe.

"Jacob and his team bring best-in-class capabilities and talent that will expand our tremendous market opportunity". The company forecast reaching EBITDA profitability by 2020 on a standalone basis.

PayPal hopes the transaction will close in the third quarter, the company announced. "But this is a very exciting way for the company to continue its vision".

Other reports by

Discuss This Article