PayPal Holdings Inc. is going to buy iZettle, which is a European financial-technology company and it is expected to help the online-payments in Europe. The company has announced on Thursday that it is going to spend about $2.2 billion to buy iZettle.
The move by the PayPal Holdings Inc to buy the European financial technology startup iZettle AB has catapulted the market of the US digital payments. iZettle started its operation in Europe by accepting the credit card payments with the help of smartphones. The company is now offering Point-of-sale systems, business loans, and invoicing products. The acquisition is said to be the largest in Paypal’s history as it will take place between San Jose, California and Jack Dorsey’s Square Inc.
iZettle, which is a Stockholm based company and is called as “Square of Europe,” usually build devices and technology w=in which about 500,000 businesses are present in and around the dozen European countries. In most, of the European countries, PayPal has already set its foot and is now eyeing bigger market like the US.
The main goal of the PayPal is to offer more comprehensive features to its retailers who want to sell the products in stores and across the digital platforms. According to the Dan Schulman who is the Chief Executive, said in an interview on Thursday, “Helping small businesses compete with the giants in the market resonated for both of us. Combining PayPal’s services with iZettle’s would allow the company to offer a full-service, one-stop-shop solution to current and prospective customers.”
This $2.2 billion deal is largest in PayPal’s history, and this is expected to close in the third quarter of this year. When the acquisition is completed, PayPal will be competing with the fast-growing payments which include rival Square. Square also gives its customers the payment processing and other tools required for small businesses.
PayPal is said to be the biggest player in online commerce. Despite being a good player, the company has failed to crack brick and mortar retail in which the vast transactions occur. iZettle announced last month that, it is going to launch e-commerce products to help the small business set up their online shops and to accept online payments. Till now, It is not clear about the online commerce strategy which can be changed and the much more experienced company now absorbs it.