PayPal in advanced talks to buy Sweden's iZettle

Pablo Tucker
May 18, 2018

Since Paypal now does not have a strong offline presence in these markets, it will look to leverage on iZettle to penetrate into these markets. If a deal was to be struck, it's speculated that iZettle would be able to fetch a premium to the $1.1bn valuation it was said to be seeking for its listing on Nasdaq Stockholm.

Sources told Sky that the deal could still fall apart.

PayPal was up 1.7% to 79.20 on the stock market today.

iZettle, which is backed by major early-stage investors such as Index Ventures and Dawn Capital, has become a big player in mobile payments infrastructure.

The company was planning to raise about 2 billion Swedish crowns ($228 million) from the IPO.Established in 2010, iZettle is known for offering small businesses and individuals a way to take payments using mini credit card readers that turn smartphones or tablets into cash registers.

iZettle, headquartered in Stockholm, is present in 11 countries, including Brazil, and offers other services to small businesses as loans.

In the UK, Worldpay, the FTSE-100 payments group, was acquired previous year by Vantiv of the U.S., while Klarna, another European payments player, has raised money from strategic investors such as Visa.

"Small businesses are the engine of the global economy and we are continuing to expand our platform to help them compete and win online, in-store and via mobile", said PayPal President and CEO Dan Schulman.

Since separating from online marketplace eBay in 2015, PayPal has reshaped itself from mostly processing transactions for its parent company online to offering a suite of digital payment services across the world.

Neither PayPal nor iZettle would respond to requests for comment on Thursday evening.

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