PayPal this week announced plans to acquire the Swedish-based payments hardware company iZettle for $2.2 billion, with a plan to expand its presence in brick and mortar stores thanks to iZettle's technology. The acquisition will also help PayPal bolster its business across iZettle's main markets of Europe and Latin America (via Bloomberg).

Notably, the purchasing deal marks PayPal's biggest acquisition ever and will put it in the hardware market as a direct competitor to small business-focused company Square. Both Square and iZettle sell payments processing hardware devices that help small businesses conduct both traditional credit card transactions and NFC payments from mobile wallets like Apple Pay.

iZettle products
The deal is now expected to close in the third quarter of 2018, while PayPal says it hopes to "reap the advantages of the merger almost immediately in certain areas."

“Small businesses increasingly want a full suite of capabilities across channels, a one-stop stop,” Dan Schulman, chief executive officer of PayPal, said in an interview. “IZettle was the perfect fit in many ways.”

“When we think about the combinations and capabilities of PayPal and iZettle,” Schulman added, they “set us apart from anyone else.”

When it does close, PayPal will gain in-store capabilities in 11 total markets that iZettle currently resides in: Brazil, Denmark, Finland, France, Germany, Italy, Mexico, Netherlands, Norway, Spain and Sweden. In the announcement, PayPal also mentioned that the acquisition allows for in-store expansion opportunities in other existing PayPal markets where iZettle isn't yet established, including the United States.

In addition to basic payments processing, Square and iZettle give businesses access to other features like invoicing software and in-stock/out-of-stock analytics. Square launched in the United Kingdom in 2017, and in the United States Square has been a partner with Apple over the past few years, launching its original NFC reader that introduced Apple Pay to small businesses back in 2015.

For PayPal, the payments company is planning its push into offline processing as it faces increased competition online. In February, eBay revealed its plan to phase out its 15-year partnership with PayPal and eventually favor payments competitor Adyen on the eBay marketplace. Then in April, Visa, Mastercard, Discover, and American Express announced an initiative that will combine their online payment options into "a single button," directly competing with PayPal for online shoppers' attention.

Tags: Square, PayPal

Top Rated Comments

nylonsteel Avatar
45 months ago
paypal has been useful to me
Score: 2 Votes (Like | Disagree)
Lennyvalentin Avatar
45 months ago
I hope they don’t raise the transaction charges as we just chose an izettle over the PayPal here reader (in the U.K.) due to the transaction cost.
Buahah, why do huge corporations ever buy out competitors? To try and corner the market so they can raise prices of course.
Score: 1 Votes (Like | Disagree)
apoltix Avatar
45 months ago
I thought iZette was in the UK too?
It is. I used one today to buy coffee.
Score: 1 Votes (Like | Disagree)

Related Stories

studio buds family

Beats Studio Buds Debuting Today With Active Noise Cancellation, Stemless Design, and More for $150

Monday June 14, 2021 8:00 am PDT by
We've seen a lot of teasers about the Beats Studio Buds over the past month since they first showed up in Apple's beta software updates, and today they're finally official. The Beats Studio Buds are available to order today in red, white, and black ahead of a June 24 ship date, and they're priced at $149.99. The Studio Buds are the first Beats-branded earbuds to truly compete with AirPods...
youtube apple tv

YouTube Discontinuing 3rd-Generation Apple TV App, AirPlay Still Available

Wednesday February 3, 2021 3:09 pm PST by
YouTube is planning to stop supporting its YouTube app on the third-generation Apple TV models, where YouTube has long been available as a channel option. A 9to5Mac reader received a message about the upcoming app discontinuation, which is set to take place in March.Starting early March, the YouTube app will no longer be available on Apple TV (3rd generation). You can still watch YouTube on...
gradiente iphone white

Brazilian Electronics Company Revives Long-Running iPhone Trademark Dispute

Tuesday May 19, 2020 1:06 pm PDT by
Apple has been involved in a long-running iPhone trademark dispute in Brazil, which was revived today by IGB Electronica, a Brazilian consumer electronics company that originally registered the "iPhone" name in 2000. IGB Electronica fought a multi-year battle with Apple in an attempt to get exclusive rights to the "iPhone" trademark, but ultimately lost, and now the case has been brought to...
YouTube Picture in Picture Feature

YouTube Premium Subscribers Can Now Use iOS Picture-in-Picture: Here's How

Wednesday August 25, 2021 3:55 am PDT by
Google has rolled out picture-in-picture support as an "experimental" feature for YouTube premium subscribers, allowing them to watch video in a small window when the app is closed. If you're a premium YouTube subscriber looking to try out picture-in-picture, follow these steps: Launch a web browser and sign into your YouTube account at YouTube.com. Navigate to www.youtube.com/new. Scroll...
apple privacy

Apple Publishes FAQ to Address Concerns About CSAM Detection and Messages Scanning

Monday August 9, 2021 1:50 am PDT by
Apple has published a FAQ titled "Expanded Protections for Children" which aims to allay users' privacy concerns about the new CSAM detection in iCloud Photos and communication safety for Messages features that the company announced last week. "Since we announced these features, many stakeholders including privacy organizations and child safety organizations have expressed their support of...
apple screen time screen icons

Persistent Kids Finding Loopholes in Apple's Screen Time Limits

Tuesday October 15, 2019 9:44 am PDT by
Apple is currently engaged in a cat-and-mouse game with persistent kids looking to circumvent Screen Time restrictions, but the company has been receiving some criticism for not moving quickly enough to lock down some of the loopholes, reports The Washington Post. A few of the loopholes and ways for parents to shut them down are documented on the site Protect Young Eyes, while these and...
2012macpro

Apple Outlines Metal-Capable Cards Compatible With macOS Mojave on 2010 and 2012 Mac Pro Models

Monday September 24, 2018 3:26 pm PDT by
Apple's new macOS Mojave update is not compatible with mid-2010 and mid-2012 Mac Pros with stock GPUs, but it is supported on 2010 and 2012 Mac Pro models that have been upgraded with graphics cards that support Metal. Apple today shared a new support document that provides a list of graphics cards that are Metal-capable, which will be useful for 2010 and 2012 Mac Pro owners who want to...
bluetti eb70 main

MacRumors Giveaway: Win a Bluetti EB70 Portable Power Station and 200W Solar Panel

Friday September 3, 2021 11:13 am PDT by
For this week's giveaway, we've teamed up with MAXOAK to offer MacRumors readers a chance to win a Bluetti portable power station and an accompanying solar panel. Bluetti makes a range of portable power station options that are useful for camping, emergencies, power outages, off-grid living, and similar situations. The Bluetti EB70 is a solid middle of the road option that offers 716Wh and...
anker lightning cable mfi

Unwrap a New Apple Device? Stock Up on Extra Certified Lightning Cables for as Little as $6

Monday December 25, 2017 5:45 am PST by
If you unwrapped an Apple product today it likely came with one of the company's first-party Lightning cables, but having an extra on hand is always a good idea, so you can place it in other rooms in your house, in your car, or in a bag when you travel. For that reason, now's a good time to shop for third-party Lightning cables that are cheaper than Apple's own accessory, but still Made For...
ipad pro 10 5

Apple Discontinues 10.5-Inch iPad Pro Following Launch of Lower-Priced 10.5-Inch iPad Air

Monday March 18, 2019 6:09 am PDT by
Apple has stopped selling the second-generation 10.5-inch iPad Pro, originally released in June 2017, after launching a new 10.5-inch iPad Air today. The 10.5-inch iPad Pro had remained available from $649 following the release of 11-inch and 12.9-inch iPad Pro models in October 2018, but it has been replaced by the 10.5-inch iPad Air with a cheaper starting price of $499. The new iPad...