PayPal in ‘talks to buy Swedish payments firm iZettle’

PayPal in 'talks to buy Swedish payments firm iZettle'

PayPal is reportedly in talks to buy iZettle, a Swedish mobile payments company that sells a card-reader aimed at small businesses.

The potential takeover comes less than three weeks after iZettle said it would list shares on the Nasdaq Stockholm.

The firm said the move would help it raise money and expand.

The Wall Street Journal said PayPal would pay about $2.2bn (£1.6bn), which Sky News said was more than iZettle had hoped to raise though a listing.

Founded in Stockholm in 2010, iZettle started out selling credit and debit card readers that could be plugged into smart phones and tablets.

It has more recently expanded with an e-commerce platform which tracks items such as sales and inventory for its customers.

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US-based Paypal was formerly part of eBay, but is now a standalone digital and mobile payments company. It claimed more than 200 million active customer accounts at the end of last year.

It owns the peer-to-peer payments company Venmo which is popular in the US, and last year acquired Swift Financial, which makes business loans.

On a call with financial analysts last month, the firm said it was considering additional acquisitions.

The firm is facing increased competition as more companies, including Apple and major banks, improve their digital offerings.

A tie-up with iZettle could increase PayPal’s capacity with firms with physical retail operations. The deal could also present a challenge to Square, a popular US company that also offers a credit card reader.

Source: BBC News

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