One of the most popular online payment services, PayPal recently came into light with a news of acquiring the European FinTech called iZettle to enable it to aid small businesses take on e-commerce platform – amazon.com and also other huge retail and eCommerce players. Paypal is going to buy iZettle in a deal of 2.2 billion.
As per the Wall Street Journal’s interview with the CEO of PayPal, Dan Schulman reveals that the deal is basically is a part of the company’s strategy to generate a more expansive contribution to the retailers that are selling products through their online portals or from physical stores, since they push back against competition from eCommerce-giant Amazon and others. It’s a great acquisition for PayPal, the digital payment company. Now the company will compete with Square, who has long catered to several small businesses with physical locations. As per interview’s questions and answers it is unveiled that PayPal has mainly ignored it in the past. But now the CEO of the company says that helping all small businesses compete with major competitors in the market really resonated for both of them. According to Schulman by combining both of these companies’ services they can offer a full-service and actually one-stop-shop solution to the potential and existing customers.
Moreover giving the Company more of a position with small businesses, the purchase of iZettle is meant to help the digital payment service offset the hit it has estimated to get by losing eBay as a customer. eBay told the public that it would handle payments from the buyers and sellers on its online platform by prompting a sell-off in shares of digital payment service, PayPal. The Wall Street Journal noted that 1/5th of its revenue was generated from eBay. And it’s also unveiled that the stock has since recovered from that. eBay now is opting to connect with Dutch rival Adyen.
Top Digital Payment Service, Paypal is paying cash for iZettle and is targeting to close the deal in the third quarter of 2018. The companies told that iZettle CEO Jacob de Geer will carry on leading the firm he co-founded.
Jeffrey is acting editor in chief of AmazingNews24 with over seven years of experience in the field of online news under his belt. Jeffrey has worked with multiple media houses and is currently leading a team of journalists, sub-editors and writers through his entrepreneurial endeavours.