iZettle
Acquired5 known investors
PayPal's point-of-sale platform that provides modern POS products designed to help businesses accept payments and track sales in a unified system.
Also known as PayPal Zettle · Zettle · Zettle by PayPal
Investors · 5
Also in the syndicate · 1
Company profile
researched Aug 2026iZettle (renamed Zettle by PayPal in February 2021) is a Swedish financial technology company founded in Stockholm in April 2010 by Jacob de Geer and Magnus Nilsson. It was among the first companies to develop a chip-card reader and companion smartphone app for mobile commerce meeting international security requirements, launching its first app and reader in 2011. The company's offering spans four core areas: card payments acceptance, point-of-sale software, small business financing and partner/third-party applications.
The payments products let small merchants accept credit and debit cards, including Mastercard, Visa and American Express. A Chip and PIN device was added in 2013, a free-of-charge Lite Reader that plugged into the audio jack of iPhone, iPad and Android devices followed in February 2015, and a Bluetooth card terminal combining Chip and PIN with contactless acceptance launched in June 2016, replacing earlier readers across Europe. The Zettle app, first released for iOS in 2011 and for Android in 2012, records, manages and analyses sales, surfacing information such as top-selling products and average payment volume. Zettle Advance, launched in 2015, provides financing to merchants based on point-of-sale transaction history with repayment tied to sales, and is available in Europe. A software development kit released in January 2014 allows developers to embed Zettle payment services and generate receipts.
Under PayPal, the business has been positioned as PayPal's point-of-sale solution; the company site markets PayPal POS (formerly Zettle) and the PayPal Reader, a touchscreen card reader connecting via USB-C cable or Bluetooth.
Founding story
Magnus Nilsson and Jacob de Geer, separated by roughly 20 years in age, did not initially intend to start a business and had limited payments knowledge, so de Geer moved into Nilsson's office and the two spent a month getting to know each other and studying the payments opportunity before founding iZettle in April 2010 in Stockholm. iZettle was de Geer's fourth start-up; he had been the first employee of TradeDoubler in 1999 and was involved with Ameibo and Tre Kronor Media in 2007. The name derives from the expression "settling a debt," a stylised combination of "I" and "Settle."
Business model
The company sells payment hardware such as card readers as one-off purchases and provides a free point-of-sale app, earning revenue from transaction processing on card payments; it also offers merchant financing repaid out of sales and partner integrations.
Transaction fees on card payments, one-off sales of card readers and terminals, and merchant advances repaid as a share of sales; the model is described as pay-as-you-go with no monthly fee or long-term contract. In Mexico the PayPal Reader is listed at a promotional price of $199 (regular price $1,699, VAT included).
Traction
In 2016 revenues were reported to be increasing twice as fast as costs, and the company raised over US$200 million across several funding rounds before being acquired by PayPal for $2.2 billion. Wikipedia lists 485 employees.
Latest developments
Following the February 2021 rebrand to Zettle by PayPal, the offering is now marketed as PayPal Point of Sale (formerly Zettle), with the PayPal Reader — a touchscreen device supporting USB-C and Bluetooth connectivity — as the current hardware. In May 2021 Zettle by PayPal made card readers available at a reduced price with a significantly lower per-transaction fee to Big Issue vendors across the UK for contactless QR code payments.
▸Full profile — market position, technology, go-to-market, geography, history, risks & controversies
Market position
Positioned as an early mover in mobile point-of-sale, credited with the first mini chip card reader and software for mobile devices, and the first mobile payments company to accept contactless payments in the UK. It was recognised by the Financial Times in 2017 and 2018 as one of Europe's fastest growing companies and reached unicorn status before its $2.2 billion sale to PayPal. Its co-founder has compared the company's growth and market opportunity to Square and Shopify.
One of the first providers of a chip-card reader and mobile app meeting international security requirements, combining hardware, free POS software, merchant financing based on its own transaction data and an open SDK in a single small-business platform, with no monthly fees or contractual lock-in.
Technology
Chip-card readers paired over Bluetooth (and USB-C on the PayPal Reader) with iOS and Android apps, supporting Chip and PIN, contactless and wallet payments such as Apple Pay and Google Pay; cloud point-of-sale software for sales tracking, inventory and reporting; PCI DSS compliant payment processing; and a public SDK enabling third-party developers to integrate payments and receipts.
Go-to-market
Direct online sign-up and hardware sales through its own site, supported by phone specialists in local markets, plus partnerships with card networks (Visa Ready, Mastercard certification), banks (Banco Santander distribution to its European customers) and integrations with third-party POS, e-commerce and accounting software such as Loyverse, QuickBooks and Xero.
Small businesses and merchants, including retail, hospitality and mobile/on-the-go sellers.
Geography
Headquartered in Stockholm, Sweden, with operations expanded to 12 countries across Europe and Latin America, including Mexico and Brazil. Zettle card payments are available to Loyverse POS merchants in Denmark, Finland, Italy, Mexico, the Netherlands, Norway, Spain, Sweden, the United Kingdom and the United States.
History
Founded April 2010 in Stockholm, iZettle launched its first mobile app and chip card reader in 2011, initially on iOS in Sweden with a Chip & Signature reader, followed by a full Swedish launch later that year and an Android app in August 2012. Its solution received a MasterCard Best Practices certification in February 2013, and in June 2013 it joined Visa's Visa Ready Program and entered a partnership with Banco Santander, which invested more than €5M. It released its first SDK in January 2014, launched the Zettle Advance financing service in 2015, and acquired Intelligentpos in September 2016 to broaden into cloud-based commerce software for hospitality. The company raised $36 million from the European Investment Bank in September 2017 and a $47 million Series E in December 2017. In May 2018 iZettle announced an intention to list on the Stockholm stock exchange, but PayPal's agreement to acquire the company for $2.2 billion led to the IPO being cancelled; the deal closed on 20 September 2018, with UK CMA review continuing and the brands held separate until preliminary approval in April 2019. The company was renamed Zettle by PayPal in February 2021.
Risks & controversies
The UK Competition and Markets Authority opened a review of the PayPal acquisition before closing; PayPal and iZettle brands and operations were held separate pending the outcome, with preliminary approval granted in April 2019. Reviewers note relatively high transaction fees (cited as 2.5% for payment links and 1.75% for card payments), settlement times of 2-3 working days, limited POS customisation, no offline payment mode and primarily online customer support.
Compiled by commissioned research from 8 cited public sources — announcements, filings, and press listed under research sources below.
Key figures
latest reportedCompany-reported or press-reported figures, each dated to when it was claimed — not independently audited.
Founder mafia
3 people who came through iZettle went on to found or lead other companies.
Competitors · 1
by search overlap
Companies competing with iZettle for the same Google search keywords, organic and paid, via search-intersection analysis.
Timeline · 18
launches, deals, and filingsZettle by PayPal made card readers available to Big Issue vendors across the UK at a reduced price with a significantly lower per-transaction fee, enabling contactless QR code purchases of the magazine.
The U.K. regulator granted preliminary approval for PayPal's acquisition of iZettle.
PayPal Holdings completed its acquisition of iZettle for approximately $2.2 billion. Jacob de Geer continued to lead iZettle reporting to COO Bill Ready, and Magnus Nilsson also joined PayPal. The UK CMA had initiated a review, and the brands and operations were held separate pending its completion.
$2.2B source ↗
It was reported that PayPal would buy iZettle for $2.2 billion.
$2.2B source ↗
iZettle announced its intention to file for an IPO on the Stockholm stock exchange; the listing was cancelled after PayPal agreed to acquire the company.
iZettle raised $47M in Series E funding from Sweden's AP4 and Dawn Capital to expand its mPOS business.
$47M source ↗
iZettle raised $36 million in funding from the European Investment Bank.
$36M source ↗
iZettle acquired cloud-based POS software provider Intelligentpos to broaden its commerce products, particularly for the hospitality sector.
A reader combining Chip and PIN with contactless payments replaced all previous card readers in Europe; the company was the first mobile payments company to accept contactless payments in the UK.
A card reader offered to merchants free of charge, plugged into the audio jack of iPhone, iPad or Android devices.
A financing service based on merchants' point-of-sale transaction history, with repayment tied to sales, available in Europe.
iZettle launched an SDK allowing developers to add its payment services to mobile apps and return information to generate receipts.
Visa signed iZettle to its Visa Ready Program, giving the company access to tools for developing mag stripe and mobile acceptance systems.
Banco Santander invested more than EUR 5M in iZettle and helped provide access to Santander's customers in Europe and other regions.
iZettle's solution achieved a MasterCard Best Practices certification.
iZettle launched its mobile app for iOS in Sweden, initially working with a Chip & Signature card reader, followed by a full service launch in Sweden later that year.
Dated company events from announcements, filings, and press; legal rows summarize public dockets and regulator releases.
In the news
▸Research sources · 8
primary sources listed
- iZettleizettle.com · web
8 public sources were cited for this profile; the first-party ones are listed here.
Frequently asked questions
- What does iZettle do?
- Swedish fintech, now Zettle by PayPal, offering card readers and point-of-sale software for small businesses.
- Who are iZettle's investors?
- iZettle's investors include 83North, Dawn Capital, Mouro Capital, Zouk Capital.