iZettle

from Wikipedia, the free encyclopedia

iZettle

logo
legal form FROM
founding 2010
Seat Stockholm , Sweden
management Jacob De Geer, Magnus Nilsson
Branch Technology , mobile payment
Website www.izettle.com

iZettle is a Swedish mobile payment provider. The iZettle service includes a small chip card reader for smartphones and tablets as well as a free app that allows anyone to accept card payments at any time and place.

iZettle was founded in 2010 by Jacob de Geer and Magnus Nilsson and funded by a number of investors including Index Ventures, Creandum, Greylock Partners, Northzone, Mastercard , American Express and SEB Private Equity. The company is headquartered in Stockholm , but the service is now also available in Finland , Denmark , Norway , Great Britain , Germany , Spain , Mexico and Brazil .

The app supports both chip cards and magnetic stripe cards. The iZettle card reader can be either audio or access via Bluetooth to the smartphone connect. The surface of the app is similar to that of a traditional cash register system with a clear product library.

iZettle product

iZettle is an EMV-tested mobile payment solution with which small retailers can accept card payments via an app for a fee of 0.95% or more. A chip & pin device has also been on the market since 2013, which can also be used to enter a PIN. MasterCard, Visa and American Express debit and credit cards are accepted. The German girocard procedure (formerly EC card) is not supported, but a girocard is usually a "co-brand" with Maestro or V-Pay.

To use the service, the customer downloads the free app and connecting the chip-card reader via the headphone socket or via Bluetooth with the Android - or iOS - Smartphone . The additional management software enables the customer to keep track of payments with detailed information such as the best-selling product or the average card turnover.

Since the beginning of 2014 iZettle has also been offering a Software Development Kit (SDK) for iOS, which is freely available to developers in all nine countries. The integration with the help of the iZettle SDK interface makes it possible to connect other business apps with the iZettle app and the chip card reader.

The iZettle solution was awarded the Mastercard Best Practice Award in February 2013 .

history

development

Jacob de Geer and Magnus Nilsson founded iZettle in April 2010 and launched the first version of the app and the first chip card reader in 2011. The name iZettle comes from the English expression "settling a debt". The founders wanted one to be able to easily deduce what the company was doing from the company name. So they decided to use a combination of the words "I" and "Settle".

iZettle is Jacob de Geer's fourth start-up. Among other things, he was the first employee of TradeDoubler in 1999, then at Ameibo and from 2007 at Tre Kronor Media.

growth

iZettle launched the dongle card reader and app for iOS in Sweden in August 2011 to meet local demands for easy card payment. The app initially worked with a chip & signature card reader. Shortly after launching in Sweden , iZettle was seen as one of the most promising startups in Stockholm.

Since August 2012 iZettle has also been available for Android devices. A new service has also enabled Visa card payments to be processed via iZettle since November 2012. Instead of using the chip card reader, the card information has to be entered manually and confirmed via the buyer's mobile phone. However, this bypassing the actual process was replaced in February 2013 by the new Chip & PIN device, which can also be used to process Visa payments as standard.

In February 2013, iZettle announced a "strategic partnership" with Banco Santander . The largest bank in the Eurozone, measured in terms of market value, has invested over five million euros in the mobile payment provider iZettle. In addition, the partnership gives iZettle access to Santander customers in the UK , Spain , Mexico and Brazil . In June 2013, Visa accepted iZettle into the Visa-Ready program, which gives the start-up access to a range of tools that are relevant for the further development of the system.

In the summer of 2017, the Church of England partnered with iZettle and SumUp to offer cashless payments in 16,000 churches. In the spring of 2018 iZettle started a pilot project with street musicians in London for contactless payments .

In May 2018, iZettle announced the acquisition by PayPal . The purchase price was $ 2.2 billion and the valuation was equivalent to 13 times annual sales of iZettle. In December 2018, the UK regulator, the Competition and Markets Authority, announced an investigation into the transaction. In April 2019, the UK regulator issued preliminary approval for the acquisition.

Finances

iZettle received $ 11.2 million in the Series A financing round in October 2011 from Index Ventures and Creandum. In May 2012, the company revised its cost model and replaced the previously fixed costs of € 0.15 with a flexible model of 2.75% per transaction for all credit cards including American Express credit cards . In 2012, iZettle received $ 31 million in Series B funding from a number of investors including Mastercard , SEB Private Equity, American Express , Northzone, and Series A investors Index Ventures and Creandum. These investments should pave the way for iZettle to be launched in additional European and international markets. In May 2014, Europe's mobile payment market leader iZettle successfully completed a Series C financing round of 40 million euros. The lead investor in this funding round is London-based growth investor Zouk Capital. The co-investors are Dawn Capital and Intel Capital as well as Series A and B investors Creandum, Greylock Partners, Index Ventures, Northzone and SEB Private Equity.

Areas

iZettle offers its service in eight countries; including Scandinavia, Central Europe, Great Britain, Mexico and Brazil.

In 2012 the company expanded to the UK, Germany and Spain. This went hand in hand with the introduction of a modified chip & signature card reader and a partnership with MasterCard, American Express and Diners Club. At the beginning of the expansion, a pilot program started. 3,000 chip card readers were given away to interested dealers in Great Britain.

In 2013 the company expanded to Latin America for the first time outside of Europe. The service was first launched in June 2013 in Mexico and then in August in Brazil. In Germany, iZettle started in October 2012 with the Volksbanken and Raiffeisenbanken as well as Deutsche Telekom as a strategic partner.

technology

With the help of a small chip & signature card reader or a chip & pin device, iZettle transforms smartphones and tablets into fully functional card readers. No data is stored on the mobile device; it is directly transmitted and processed in encrypted form. The smartphone only functions as a secure modem. After each transaction, the buyer can decide whether he would like to receive a receipt by email. The iZettle service is subject to the strict regulations of the Swedish FSA supervision.

Individual evidence

  1. ↑ iZettle starts with DZ Bank and Telekom in Germany . Retrieved May 20, 2014.
  2. ↑ iZettle turns smartphones into cash card terminals . Retrieved May 20, 2014.
  3. ↑ Brief message - The mobile payment provider iZettle receives five million euros in funding from Banco Santander. . Retrieved May 20, 2014.
  4. ↑ iZettle: The market is huge . Retrieved May 20, 2014.
  5. ↑ Fight the Cash . Retrieved May 20, 2014.
  6. ↑ Fight the Cash . Retrieved May 20, 2014.
  7. ↑ iZettle starts in Brazil, Stripe here . Retrieved May 20, 2014.
  8. ↑ Mobile card payment is expanding . Retrieved May 20, 2014.
  9. ↑ Over 50,000 card readers on the German market . Retrieved May 20, 2014.
  10. ↑ ROUNDUP / iZettle payment service: Over 50,000 card readers on the German market . Archived from the original on May 21, 2014. Retrieved May 20, 2014.
  11. ↑ Ten things not to be missed at Ifa . Retrieved May 20, 2014.
  12. ↑ iZettle: New chip & signature card reader also accepts magnetic strips . Retrieved May 20, 2014.
  13. ↑ SumUp mobile payment service instigates fee-price war . Archived from the original on May 21, 2014. Retrieved May 20, 2014.
  14. ↑ SumUp mobile payment service instigates fee-price war . Archived from the original on May 21, 2014. Retrieved May 20, 2014.
  15. ↑ Credit card payment by smartphone: iZettle put to the test . Retrieved May 20, 2014.
  16. ↑ Stockholm's homeless accept credit cards . Retrieved May 20, 2014.
  17. ↑ The homeless accept credit cards . Retrieved May 20, 2014.
  18. ↑ Stockholm's homeless accept credit cards . Archived from the original on May 20, 2014. Retrieved May 20, 2014.
  19. ↑ Price war with EC card fees . Retrieved May 20, 2014.
  20. ↑ Second mobile payment service lowers fees for EC cards . Retrieved May 20, 2014.
  21. ↑ Second mobile payment service lowers fees for EC cards . Retrieved May 20, 2014.
  22. ↑ Second mobile payment service lowers fees for EC cards . Retrieved May 20, 2014.
  23. ↑ Second mobile payment service lowers fees for EC cards . Retrieved May 20, 2014.
  24. ↑ iZettle lowers fees . Retrieved May 20, 2014.
  25. ↑ Card payments via iPad and iPhone: iZettle reduces transaction fees . Retrieved May 20, 2014.
  26. ↑ So iZettle's m-payment solution is marketing . Archived from the original on May 21, 2014. Retrieved May 20, 2014.
  27. ↑ iZettle starts with Software Development Kit (SDK) for iOS . Retrieved May 20, 2014.
  28. ↑ Card payment with the mobile phone . Retrieved May 20, 2014.
  29. ↑ iZettle launches mobile card reader with additional PIN entry . Retrieved May 20, 2014.
  30. ↑ When the cell phone becomes a wallet . Retrieved May 20, 2014.
  31. ^ Church of England rolls out cashless giving. In: UK Fundraising. March 21, 2018. Retrieved May 29, 2018 .
  32. ↑ Contactless donations to be rolled out across the Church of England. In: Church Times. March 23, 2018. Retrieved May 29, 2018 .
  33. ↑ heise online: Street musicians in London will soon accept contactless payments. Accessed June 19, 2018 (German).
  34. ↑ Cashless payments: With iZettle, street musicians in London can offer NFC payment. In: IT finance magazines. May 28, 2018. Retrieved June 19, 2018 .
  35. ^ IZettle: An open letter from Jacob de Geer - iZettle to join forces with PayPal. In: izettleinvestors.com. May 18, 2018, accessed May 22, 2018 .
  36. ↑ Fintech: This is what PayPal expects from the takeover of the Swedish mobile payment service iZettle . ( handelsblatt.com [accessed on May 24, 2018]).
  37. ↑ The trillion business. In: Boerse ARD. May 25, 2018. Retrieved June 19, 2018 .
  38. ↑ Britain refers to Paypal-iZettle deal for in-depth review . In: Reuters . December 5, 2018 ( reuters.com [accessed December 26, 2018]).
  39. ↑ UK competition regulator provisionally approves PayPal-iZettle deal. In: Financial Times. April 20, 2019, accessed May 14, 2019 .
  40. ↑ 40 million euros for iZettle . Retrieved May 20, 2014.
  41. ↑ Mobile payment service iZettle fills the cash register with millions . Archived from the original on May 21, 2014. Retrieved May 20, 2014.
  42. ↑ Mobile payment service iZettle brings 40 million euros in fresh money . Retrieved May 20, 2014.
  43. ↑ As Square Struggles, European Payments Rival iZettle Takes Another $ 55.5 M in Funding . Retrieved May 20, 2014.
  44. ↑ iZettle starts with DZ Bank and Telekom in Germany . Retrieved May 20, 2014.
  45. ↑ iZettle turns smartphones into cash card terminals . Retrieved May 20, 2014.
  46. ^ The Square-like iZettle Launches in Germany with DZ BANK and Deutsche Telekom, Puts Heat on Payleven . Retrieved May 20, 2014.
  47. ^ European Square rival iZettle teams up with Deutsche Telekom to take on Payleven in Germany . Retrieved May 20, 2014.
  48. ↑ Mobile Payment: iZettle starts in Germany . Retrieved May 20, 2014.
  49. ↑ iZettle - the POS payment silo breaker from Sweden or the European Square . Archived from the original on May 22, 2014. Retrieved May 20, 2014.