The deal is the biggest ever for San Jose, California-based PayPal and will help it compete with Square Inc., which made a name for itself by helping small businesses and food-truck vendors conduct credit card and mobile transactions. "iZettle and PayPal are a strategic fit, with a shared mission, values and culture-and complementary product offerings and geographies".
"As the digital economy gathers speed, we are excited to provide new and innovative capabilities to better serve our consumer and merchant customers", said Dan Schulman, PayPal's president and CEO, said.
PayPal already have a card reader, but where iZettle are strong is their in-store expertise, digital marketing strength and mobile point-of-sale technology.
IZettle expects to generate $165 million in revenue in 2018, and process about $6 billion on its platform. "Upon closing, we will gain in-store capabilities in 11 markets, near-term in-store expansion opportunities into other existing PayPal markets, and the acceleration of omnichannel commerce solutions in Australia, U.K., and the U.S".
In an interview on Thursday, de Geer said that he changed his mind after meeting with the executive team at PayPal.
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. The company forecast reaching EBITDA profitability by 2020 on a standalone basis.
"By joining the PayPal family we'll become iZettle with superpowers and jump on a fast track to realise our vision". The two companies will continue to operate independently until close.
FORMER EBAY BAE PayPal has announced that it will buy mobile payment company iZettle in a multi-billion dollar deal.