Without a doubt, the strategy is the great bet by the internet giants that understand that customers they can request their services at any time and placewhich includes the digital and physical world. Now onto what is probably one of the biggest purchases of the year, and acquires iZettlethe Swedish payment company.
What is iZettle
iZettle is one with the aim of manage card payments through mobile devices. It consists of software supported by large financial companies such as MasterCard and Santander () and a small attached card reader that turns any mobile or tablet into a traveling cashier.
Thanks to this system, any SME or professional who cannot afford to hire a POS terminal or who are constantly on the move, can offer their customers the possibility of paying by card and even depending on the banking institution, to extend the payment for months without interest.
Since then its mobile payment app has managed to expand internationally and has close to half a million small merchants on its platform in 12 markets in Europe and Latin Americaespecially in Mexico and , where it has a large presence.
iZettle will open new channels and markets to PayPay
Although only a few weeks ago iZettle announced its intention to go public With the intention of obtaining capital to continue its expansion, PayPal decided to anticipate.
However, this union, which can become effective during the third quarter of 2018, will make the payment giant PayPal, until now 100% digital, also enter the physical space of your customers and of course expand your market to new horizons.
By uniting with iZettle, PayPal will open up a business model in which, after many years of managing secure online payments almost everywhere in the world, it will be able to be present in the network of SMEs in different businesses that require mobile payment services and also through cards.
The competition against Square
The agreement by the American technology company has been for $2.2 billion (around 1,861 million euros) with which it will take over 100% of the payment company iZettle, but despite this both companies will continue to operate independently. A) Yes, will continue to lead the Swedish firm.
PayPal has stood out for being a company with clear goals: buy new technologies to expand your business model and at the same time eliminate the competition. Some examples are the purchase of , an online and mobile digital wallet that PayPal acquired in 2013.
Now the competition to face is called a mobile payment system very similar to iZettle which belongs to the creator of Twitter, jack dorsey and that little by little has been expanding both in the digital and physical environment.
While Square generated around $2.2 billion in revenue in 2017, it has yet to break even, and with the iZettle acquisition, PayPal seems to have gained ground in an omnichannel market. You’ll make it?
Image: from iZettle
Stay informed of the most relevant news on our news channel
Facebook Comments
Disqus