PayPal Acquiring iZettle to Compete With Square for In-Store Payments Processing

by

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
33 months ago
paypal has been useful to me
Score: 2 Votes (Like | Disagree)
Lennyvalentin Avatar
33 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
33 months ago

I thought iZette was in the UK too?

It is. I used one today to buy coffee.
Score: 1 Votes (Like | Disagree)

Top Stories

apple top apps games 2020

Apple Shares Top 20 Most Downloaded Games and Apps of 2020

Tuesday December 1, 2020 9:38 pm PST by
Alongside picks for the top iPhone, iPad, and Mac apps and games of the year, Apple today shared charts featuring the Top Games of 2020 and the Top Apps of 2020, revealing the most popular free and paid apps and games during the year. Among Us! was the top free game of 2020, followed by Call of Duty: Mobile, Roblox, and Subway Surfers. Ink Inc. Tattoo Drawing was the number four free app,...
m1 chip macbook air pro

Developer Delves Into Reasons Why Apple's M1 Chip is So Fast

Monday November 30, 2020 1:57 pm PST by
Apple's M1 chip is the fastest chip that Apple has ever released in a Mac based on single-core CPU benchmark scores, and it beats out many high-end Intel Macs when it comes to multi-core performance. Developer Erik Engheim recently shared a deep dive into the M1 chip, exploring the reasons why Apple's new processor is so much faster than the Intel chips that it replaces. First and foremost,...
maxresdefault

Italy Fines Apple $12 Million for Misleading iPhone Water Resistance Claims

Monday November 30, 2020 3:10 am PST by
Apple has been slapped with a 10 million euro ($12 million) fine by Italy's antitrust watchdog for unfair commercial practices related to its iPhone marketing in the country. One of the Apple ads cited in the Italian watchdog's proceedings (credit: setteBIT) Specifically, Apple is being charged for misleading claims in promotional messages about how deep and how long iPhones can be submerged...
General cyber monday 20 sale feature

Apple Cyber Monday 2020: Discounts on iPads, Macs, AirPods, and More [Updated]

Monday November 30, 2020 6:25 am PST by
Today is Cyber Monday, a shopping event that sees many of the same deals from Black Friday bleed over into a new week, along with a few brand new offers on everything from Apple products to related accessories. In this post we'll highlight the best online discounts that you can find on Apple devices today. Note: MacRumors is an affiliate partner with some of these vendors. When you click a...
16 inch MBP Mini Led

Mini-LED M1 MacBook Pro and Mini-LED iPad Pro Models Coming First Half of 2021

Monday November 30, 2020 2:24 am PST by
Apple is widely reported to be embracing mini-LED display backlighting technology for some products next year, and a new report today by DigiTimes has named several of Apple's partners in the supply chain that are expected to benefit from the switch. According to the report, Apple is set to launch its first mini-LED iPad Pro in the first quarter of 2021 and mass produce mini-LED MacBook Pro...
iphone8guide b

iOS 14.2 Quietly Added FaceTime 1080p Support to iPhone 8 and Later Models

Wednesday December 2, 2020 3:21 am PST by
Back in early November, Apple released iOS 14.2 and announced with it a slew of new features for iPhones, but one thing it didn't mention was the apparent addition of support for 1080p FaceTime calls on iPhone 8 and later devices. The little-known fact was discovered by MacMagazine, which found that Apple quietly updated the specs pages for devices like iPhone XR shortly after the release of ...
Mac Mini 2018

Apple Developers Now Able to Natively Run macOS Within AWS With Amazon EC2 Mac Instances

Monday November 30, 2020 9:01 pm PST by
As AWS re:Invent kicks off, Amazon Web Services today announced new Mac instances for Amazon Elastic Compute Cloud, allowing AWS customers to run on-demand macOS workloads in the AWS cloud for the first time. Amazon says that the new feature extends the flexibility, scalability, and cost benefits of AWS to all Apple developers as those creating apps for iPhone, iPad, Mac, Apple Watch, Apple...
best apps of 2020

Wakeout! Named Apple's Best App of 2020, While Zoom Earns the Title for Best iPad App

Tuesday December 1, 2020 9:26 pm PST by
Apple today shared its App Store Best of 2020 winners, highlighting its picks for the top iOS, iPadOS, and macOS apps and games released over the course of the year. Apple's iPhone App of the Year award went to Wakeout!, which is a family friendly exercise and movement app that encourages people to complete easy exercises while at home. Apple's iPad App of the Year was Zoom, which soared in...
magsafe duo charger

MagSafe Duo Charger for iPhone 12 and Apple Watch Now Available for Purchase

Tuesday December 1, 2020 4:15 pm PST by
Apple today began selling the MagSafe Duo Charger that was announced alongside the new iPhone 12 models back in October. Priced at $129, the MagSafe Duo offers a MagSafe charging puck for the iPhone 12, 12 Pro, 12 Pro Max, and 12 mini, along with an Apple Watch charger. Though the accessory was announced in October and was listed as coming soon, it was not clear when it would launch. Orders...
imac 5k 2014 video

Apple Adds First iMac Models With Retina 5K Display to Vintage Products List

Tuesday December 1, 2020 8:09 am PST by
The first iMac with a Retina 5K display is one of several iMac models that have been added to Apple's vintage products list this week. In the past, vintage Apple products were no longer eligible for repairs at the Genius Bar or at Apple Authorized Service Providers, but Apple began offering extended repairs of select vintage products in 2018. Many of the iMac models listed below will likely...