PayPal agrees to buy Sweden's iZettle in US$2.2b deal

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iZettle is best known for offering small businesses a mini credit card reader that can turn smartphones and tablets into payment registers, akin to that offered by US-based Square Inc, the company founded by Twitter Chief Executive Officer Jack Dorsey.

IZettle last week said it planned to list on the Nasdaq Stockholm stock exchange this year, which would make it one of the biggest European fintech companies to list. In today's digital world, consumers want to be able to buy when, where and how they want. "iZettle and PayPal are a strategic fit, with a shared mission, values and culture-and complementary product offerings and geographies".

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Upon closing, PayPal gains in-store capabilities in the following 11 markets: Brazil, Denmark, Finland, France, Germany, Italy, Mexico, Netherlands, Norway, Spain and Sweden. The company's CEO, Jacob de Geer, will continue to lead the business under PayPal.

US -based PayPal already operates in more than 200 countries around the world but is working to expand its offerings.

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The deal will also help PayPal provide a more comprehensive suite of services to its merchants. The deal will be an all-cash deal and is expected to be closed by third quarter of the current financial year. According to a statement by the two companies, iZettle expects to generate gross revenue of about $165 million in 2018, with roughly $6 billion of total payment volume expected to be processed on its platform. The deal expands PayPal's in-store expansion opportunities in its current markets and help the company push omnichannel commerce services in Australia, the United Kingdom and the US.

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