The competition for online payment dominance has just seen an important change for one of the challengers.
PayPal, traditionally known as a purely digital online payment processor, has made a clear statement regarding its plans with the acquisition of Swedish payment company, iZettle.
While the company already reaches over 225 million active users, this purchase will provide PayPal with exposure to markets where it does not currently have a strong presence.
The price for this move, which will be around $2.2B dollars, is a solid investment in PayPal’s quest to be an end-to-end payment solution. As the retail industry continues to move towards an ever-stabilizing online ecosystem, the ability to accept and process payments for goods and services via a point-of-sale device will serve PayPal well.
This purchase should also put an end to the speculations that PayPal will buy Square. The addition of a physical component to PayPal’s arsenal will, instead, establish it as a serious competitor in the space.