Those unfamiliar with iZettle may no longer need more time for familiarity, as CEO Jacob De Geer says his “global ambitions” for the company may soon skyrocket it to popularity. The answer to his goal to being a potential superpower is within Paypal’s acquisition of the enterprise. What will De Geer’s future hold?
If you haven’t heard of iZettle, it might be important to first hear about its contributions to modern society today – particularly modern London. Go to London this summer and you’ll find the bustling capital city of the United Kingdom filled with street performers – with streets themselves receiving a tech upgrade. Buskers all over the capital are now outfitted with iZettle contactless terminals, allowing citizens to just make payments with a tap of their credit card. This particularly interesting upgrade is essential to fully making Britain more cashless, and it appears iZettle is out for more improvements.
It appears iZettle has just scrapped its plans to establish an IPO after a “fortnight of intensive discussions” with payment giant PayPal. In fact, it appears there’s been a whopping $2.2-billion takeover of the company, which iZettle CEO Jacob De Geer said will “superpower” the growth of the company. In fact, according to him, this is just the “start.”
In fact, interestingly, this move might be directly against its United States-based rival Square, which are also into cashless-based technology. PayPal’s iZettle acquisition is a direct win against Square and its CEO Jack Dorsey, both of which have been observed to make direct moves to woo retailers from Europe away from iZettle. Not anymore, perhaps.
It’s not as though iZettle is not without its charm, anyway. There are already a lot of low-cost and stylish card readers courtesy of iZettle all across pop-up restaurants and artisan coffee shops, and even across any of more than half a million small businesses all over Europe.
De Geer, however, wants to make sure there’s a future where businesses of all shapes and sizes will be able to accept credit card payments wherever you are in the world.
It can be remembered that iZettle had been preparing its own $1.1-billion initial public offering earlier in the summer, but De Geer said they had to make last-minute decisions after the $100-billion payments giant had come in with its own surprising counteroffer.
De Geer said that while they could’ve just not accepted the offer and tried to go at it, they only have a presence in 12 countries and half a million customers – whereas PayPal has a whopping reach of 200 markets and 20-million customers. Such a market is ripe for potential.
Sweden will just have to review and check if the deal abides with its competition regulation guidelines – but after that, iZettle will be able to bring its card reader technology to hundreds of customers and markets that are accessed by PayPal.
It appears there are also windfalls for the rest of co founders of iZettle and its investors, such as Index Ventures who actually got to pocket $258-million from the acquisition.
Although some speculate iZettle had just put up the IPO filing to make PayPal make its move, De Geer said the talks with PayPal really only begun two (2) weeks before the listing.
While iZettle already has a market tailored to a niche generation of businesses and retailers – especially those interested in contactless payments, the PayPal acquisition will be able to take his tech to a much wider demographic. And now, this move will be able iZettle to combat one of its main competitors: Square.
Interestingly, Square appears to be on a roll this year, as the company is about to generate a whopping $3-billion in revenue for just 2018. However, with iZettle having a European market already, Square penetrating Europe might make things a bit difficult to gather a market to rival its, well, rival. And now the PayPal acquisition might make it much harder.
De Geer commented that Square has been “gearing up” for this push for the past eight years, and the difficulty is evident given the European markets are highly different from the United States’. And while its efforts to try to penetrate the European demographic is admirable, it’s too early to determine its success with the United Kingdom.
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