PayPal’s recent acquisition of iZettle may have surprised a lot of people in the market. After all, the service that created 2-day shipping and 1-day payments may now have access to cardless transactions, which can very well revolutionize the market. However, PayPal appears to want in on a streak, as it appears there’s a $3 billion per year plan for the company to get more acquisitions.
PayPal appears to be on the lookout for more companies to acquire since its iZettle acquisition. It can be remembered that Swedish startup iZettle has been purchased by PayPal Holdings Inc. for $2.2-billion – which is the biggest ever deal yet when it comes to the United States payments giant. However, aside from the financial tech startup, PayPal seems to be hungry for more companies.
This is according to a statement by Dan Schulman, PayPal chief executive and president, to media in Germany’s business daily newspaper Handelsblatt. As per the report, it appears PayPal is ready to release up to $3-billion every year on an acquisitions spree that will be able to help the company “acquire” capabilities of a specific range.
Schulman added that they won’t necessarily rule out bigger deals if it’s a good fit for the company.
It can be remembered that PayPal has recently purchased iZettle, based on Stockholm, Sweden, for a whopping $2.2-billion. Jacob de Geer, iZettle CEO, said spent a year trying to get its stock market listing successful when PayPal approached it with an offer. Bill Ready, PayPal COO, said the move will be doing this to be able to increase its payments presence when it comes to physical retailers.
For the unfamiliar, iZettle is the European rival to Square, which is the United States financial tech firm led by Jack Dorsey, Twitter CEO. Interestingly, Square competes directly with iZettle, which is worth $21-billion. IZettle is known to make wireless and small chip readers alongside other products that do product processing. It also recently launched a product that allows small business be able to create unique online stores exclusive to their service.
The purchase, too, seems to be ideal for iZettle’s plans in terms of a global scale. The $2.2-billion acquisition also means iZettle no longer has to make its own IPO listing. De Geer added that while they’re capable of trying to manage on their own, their 500,000 merchants market is small compared to the 20-million reach PayPal has. Not to mention, PayPal has a presence in 200 countries whereas iZettle has been currently operating in Latin America and Europe.
It can be remembered that PayPal, worth $94-billion, is also being used by major retailers worldwide, including Best Buy and Walmart. Interestingly, iZettle is catered to small and medium businesses.
It can be remembered that PayPal got into the public limelight after its separation from eBay, the online marketplace giant, last 2015. Since then, PayPal has shifted into processing online transactions for eBay and offering a wide variety of digital payment services to other sites.
However, PayPal did suffer a blow from eBay earlier this 2018 when it chose to let go of PayPal as its main payments provider. Instead, eBay chose Adyen, its own European start-up, in order to replace the payments company. It appears the iZettle acquisition will allow PayPal to have a more “technical” presence in its European market.
As to just who or what PayPal is currently targeting is unfortunately out of the equation for now. Perhaps it’s important to wait for a while in order to get a better assessment of PayPal’s full plans for the future.
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