PayPal agrees to buy iZettle for United States dollars 2.2 bn

PayPal agrees to buy iZettle for United States dollars 2.2 bn

PayPal agrees to buy iZettle for United States dollars 2.2 bn

PayPal Holdings Inc (PYPL.O) is in advanced talks to buy iZettle AB (IPO-IZET.ST) in a deal that could value the Swedish fintech at around $2.2 billion, the Wall Street Journal reported on Thursday, citing sources familiar with the matter, APA reports quoting Reuters. The news came just after iZettle announced last week that it would list an IPO on the Nasdaq in Stockholm later this year.

IZettle initially sold a mobile credit-card reader, similar to Square's, and has expanded into software and financing services to support small businesses.

Sky News has learnt that PayPal could announce its intention to buy iZettle as soon as Friday morning.

PayPal, based in San Jose, California, says Stockholm-based iZettle is on pace to process about $6 billion in payments this year.

PayPal president Dan Schulman said: "This combination brings together iZettle's in-store expertise, recognised brand and digital marketing strength with PayPal's global scale, mobile and online payments leadership, and trusted brand reputation". Paypal expects this huge bet to pay off by giving it a formidable presence in the point-of-sales market and a better standing against strong competitors such as Square Inc and Stripe Inc.

As per the deal, the position of iZettle's co-founder and CEO Jacob de Geer will remain intact. iZettle's entire executive team will also continue the operation as before.

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.

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