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PayPal Acquiring iZettle to Compete With Square for In-Store Payments Processing

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Original poster
Apr 12, 2001
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PayPal this week announced plans to acquire the Swedish-based payments hardware company iZettle for $2.2 billion, with a plan to expand its presence in brick and mortar stores thanks to iZettle's technology. The acquisition will also help PayPal bolster its business across iZettle's main markets of Europe and Latin America (via Bloomberg).

Notably, the purchasing deal marks PayPal's biggest acquisition ever and will put it in the hardware market as a direct competitor to small business-focused company Square. Both Square and iZettle sell payments processing hardware devices that help small businesses conduct both traditional credit card transactions and NFC payments from mobile wallets like Apple Pay.


The deal is now expected to close in the third quarter of 2018, while PayPal says it hopes to "reap the advantages of the merger almost immediately in certain areas."
"Small businesses increasingly want a full suite of capabilities across channels, a one-stop stop," Dan Schulman, chief executive officer of PayPal, said in an interview. "IZettle was the perfect fit in many ways."

"When we think about the combinations and capabilities of PayPal and iZettle," Schulman added, they "set us apart from anyone else."
When it does close, PayPal will gain in-store capabilities in 11 total markets that iZettle currently resides in: Brazil, Denmark, Finland, France, Germany, Italy, Mexico, Netherlands, Norway, Spain and Sweden. In the announcement, PayPal also mentioned that the acquisition allows for in-store expansion opportunities in other existing PayPal markets where iZettle isn't yet established, including the United States.

In addition to basic payments processing, Square and iZettle give businesses access to other features like invoicing software and in-stock/out-of-stock analytics. Square launched in the United Kingdom in 2017, and in the United States Square has been a partner with Apple over the past few years, launching its original NFC reader that introduced Apple Pay to small businesses back in 2015.

For PayPal, the payments company is planning its push into offline processing as it faces increased competition online. In February, eBay revealed its plan to phase out its 15-year partnership with PayPal and eventually favor payments competitor Adyen on the eBay marketplace. Then in April, Visa, Mastercard, Discover, and American Express announced an initiative that will combine their online payment options into "a single button," directly competing with PayPal for online shoppers' attention.

Article Link: PayPal Acquiring iZettle to Compete With Square for In-Store Payments Processing
 

Lennyvalentin

macrumors 65816
Apr 25, 2011
1,431
782
Oh gods, is there nothing on this sweet earth that PayPal won't sully with its evil taint?

Funny: for me, this page's ad banner is an iZettle ad...
 

tmiw

macrumors 68020
Jun 26, 2007
2,207
501
San Diego, CA
I thought iZette was in the UK too? Then again, I forget if PayPal's reader is also available in the UK, so maybe it's not mentioned above because of that.
 

dontwalkhand

macrumors 603
Jul 5, 2007
5,467
1,614
Phoenix, AZ
iZettle users in the UK, etc, I’d like to introduce you to Square!

As anyone would never use a Paypal product and actually like it lol!
 

vmistery

Contributor
Apr 6, 2010
781
523
UK
I hope they don’t raise the transaction charges as we just chose an izettle over the PayPal here reader (in the U.K.) due to the transaction cost.
 

Lennyvalentin

macrumors 65816
Apr 25, 2011
1,431
782
I hope they don’t raise the transaction charges as we just chose an izettle over the PayPal here reader (in the U.K.) due to the transaction cost.
Buahah, why do huge corporations ever buy out competitors? To try and corner the market so they can raise prices of course.
 
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apoltix

macrumors newbie
Jun 8, 2008
16
17
London
iZettle users in the UK, etc, I’d like to introduce you to Square!

As anyone would never use a Paypal product and actually like it lol!

As a customer I would love to use Square, as I've used it in the US and it works great. Square has been in the UK for little over a year now, but I haven't seen a single one in London. I'm sure they exist, just not where I shop. I have seen many iZettle and a few PayPal Here.
 

dhess34

macrumors newbie
Feb 14, 2008
23
37
PayPal is dying a slow death. Only a matter of time. Good riddance.

> Stock is up over 30% in the past year, all meaningful metrics (active users, merchant accounts, total payment volume) continue to rise every quarter...

“Yup, almost dead, gonna kick the bucket any minute now!”
[doublepost=1526666201][/doublepost]
iZettle users in the UK, etc, I’d like to introduce you to Square!

As anyone would never use a Paypal product and actually like it lol!

I’ve used PayPal for 17-18 years, and never once had an issue. They played a large role in the internet becoming what it is today, as they single handedly introduced trust in online transactions.

As to ‘who’; PayPal has almost a quarter of a billion active accounts, so it’s safe to say that your crazy self is in the minority!
 

MaximizedAction

macrumors member
Sep 17, 2012
60
140
paypal has been useful to me
Same.
In Germany, before online shopping got big, credit cards were not really necessary for street shopping, so I never had one. Then, when online shops were on the rise in the 00’s, almost all of them required a Visa or Mastercard, so I was cut off from a lot of things I wished I could’ve bought - though none of it wasworth getting a credit card and get into their confusing rate business, that I had no experience with and all looked like I always had to accept some downside.
When PayPal opened up to Germany, it opened up so many doors. A lot of online shops already offered that as a payment method, and it had no complicated interest rate plans. I still use it and have had no real problems so far.

Not a shill, I just think it’s comfy as hell for me, and it always leaves me a bit confused why it’s getting so much hate.
 

vmistery

Contributor
Apr 6, 2010
781
523
UK
What’s wrong with Square? They’re great in the US, and in the UK they’re just as good.
The square reader relies on you giving the customer your smartphone which on a market stall is not a great idea. Plus, when we were talking to customers about what they would trust more a physical pin machine or entering something on a smartphone they preferred the dedicated machine. If fees rise or square offer a similar device we’d look to migrate.
 

dontwalkhand

macrumors 603
Jul 5, 2007
5,467
1,614
Phoenix, AZ
The square reader relies on you giving the customer your smartphone which on a market stall is not a great idea. Plus, when we were talking to customers about what they would trust more a physical pin machine or entering something on a smartphone they preferred the dedicated machine. If fees rise or square offer a similar device we’d look to migrate.
We use Square readers all the time in the US, and it is quite common to hand the phone over to someone to sign or PIN. The PIN screen on Square is secured by Pin-On-Glass which is certified, and is just as secure as a physical PIN pad. The Bluetooth chip reader actually handles all the actual security. Plus it takes Apple Pay and contactless cards so you can just bypass the PIN screen altogether by tapping the customers card. In the US theres no limit for tap (used to be $25) not sure if that’s the case for the UK.
 

vmistery

Contributor
Apr 6, 2010
781
523
UK
We use Square readers all the time in the US, and it is quite common to hand the phone over to someone to sign or PIN. The PIN screen on Square is secured by Pin-On-Glass which is certified, and is just as secure as a physical PIN pad. The Bluetooth chip reader actually handles all the actual security. Plus it takes Apple Pay and contactless cards so you can just bypass the PIN screen altogether by tapping the customers card. In the US theres no limit for tap (used to be $25) not sure if that’s the case for the UK.
At the moment the default contactless limit is £30 but some retailers allow more with Applepay you just get a lot of folks here (especially the older generation) who don’t have or don’t use contactless. As for the technology being more or less secure I would assume they were both secure it’s just what it appears like to the customer. On a stall you are a bit vulnerable, if someone nicks your £19 card reader you care a lot less than if it’s your iPhone.
 
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