The following is an excerpt from Adam Levy | May 21, 2018 | ibtimes.com |
PayPal (NASDAQ:PYPL) is making its biggest acquisition ever, plunking down $2.2 billion for iZettle, a Stockholm-based in-store payments service provider. iZettle will provide a greater presence for PayPal in stores and in Europe, and enable it to compete better with Square (NYSE:SQ) for the business of small merchants.
The article originally appeared in Motley Fool.
Square, meanwhile, will have to deal with a competitor that suddenly has a lot of cash at its disposal to fuel its growth. Among Square's top focuses this year are its international markets, including the United Kingdom, where iZettle also has a presence. PayPal's acquisition could present a challenge for Square's international growth.
How PayPal zettled on iZettle
PayPal has tried, fairly unsuccessfully, to enter the in-store payments market for several years. Despite several high-profile partnerships with some big retailers, and later making deals with credit card companies, PayPal still isn't making much progress in brick-and-mortar retail. PayPal's mobile credit card readers are practically unknown compared to Square's prevalent hardware.
iZettle, thus, provides PayPal with a way into brick-and-mortar retailers. It operates in 12 markets: Sweden, Norway, Finland, Denmark, the Netherlands, Germany, France, U.K., Spain, Italy, Brazil, and Mexico.
For more visit: ibtimes.com