PayPal has agreed to acquire Swedish financial technology firm, iZettle, in a deal valued at $2.2bn.
Based in Stockholm, iZettle offers a range of payment and commerce solutions, including payments, point of sales, funding and partners applications.
The firm launched the world’s first mini chip card reader and software for mobile devices, which revolutionized mobile payments.
The acquisition will help PayPal to expand its in-store presence and strengthen its platform to better serve small businesses across the globe.
PayPal president and CEO Dan Schulman said: “Small businesses are the engine of the global economy and we are continuing to expand our platform to help them compete and win online, in-store and via mobile.
“iZettle and PayPal are a strategic fit, with a shared mission, values and culture—and complementary product offerings and geographies.”
The deal will allow to combine iZettle’s in-store expertise, brand and digital marketing strength with PayPal’s global scale, mobile and online payment capabilities.
Once the deal concludes, PayPal will have in-store capabilities in 11 markets, including Brazil, Denmark, Finland, France, Germany, Italy, Mexico, Netherlands, Norway, Spain and Sweden.
PayPal can also expand in-store capabilities to its other existing markets, as well as accelerate omnichannel commerce solutions in Australia, the UK and the US.
iZettle will serve as an European center of excellence for PayPal’s in-store product and services offerings, after completion of the deal.
Subject to customary closing conditions, the deal is expected to be completed in the third quarter of this year.
iZettle CEO Jacob de Geer said: “The combination of iZettle and PayPal will provide tremendous benefits to our merchants who will have access to an even wider range of tools to help them get paid, sell smarter and grow.”
PayPal’s digital payments platform, including Braintree, Venmo and Xoom, is available in more than 200 markets across the globe.
The platform allows consumers and merchants to receive money in over 100 currencies, withdraw funds in 56 currencies and hold balances in their PayPal accounts in 25 currencies.