PayPal will acquire iZettle, a small business commerce platform operating in Europe and Latin America, for $2.2 billion. The deal will combine iZettle’s in-store solutions with PayPal’s global scale and mobile and online payment systems.
PayPal will gain in-store capabilities in Brazil, Denmark, Finland, France, Germany, Italy, Mexico, The Netherlands, Norway, Spain and Sweden, where iZettle works with nearly 500,000 merchants. Additionally, the deal will open near-term in-store expansion opportunities in some of PayPal’s other markets, and accelerate the growth of its omnichannel commerce solutions in Australia, the UK and the U.S.
“iZettle and PayPal are a strategic fit, with a shared mission, values and culture — and complementary product offerings and geographies,” said Dan Schulman President and CEO of PayPal. “In today's digital world, consumers want to be able to buy when, where and how they want.”
The move toward omnichannel could be beneficial for PayPal, as 81% of retailers are expected to deploy unified commerce platforms by 2020, according to a survey by Boston Retail Partners (BRP). As of February 2018, 28% of respondents were already using a single platform to support commerce for stores, mobile and the web.
Jacob de Geer will remain CEO of iZettle after the deal closes, reporting to PayPal COO Bill Ready. The rest of iZettle’s leadership team will remain in place as well.