Business

PayPal in talks for $2.2bn takeover of iZettle

PayPal is preparing to take over Swedish payments app iZettle, just a week after it announced plans to float.

An announcement of the $2bn deal is expected as early as tomorrow, after Sky News reported that the two companies were in talks.

The price PayPal is thought to be bidding would value iZettle at double its targeted IPO valuation of $1.1bn.

The firm announced plans to raise £170m earlier this month with a planned Stockholm float, though this would be scuppered by a takeover.

Sources told Sky that the deal could still fall apart.

A takeover would mark just the latest move in the race for dominance of the digital payments market, in which established companies like PayPal are facing challengers.

PayPal was even cast aside by EBay earlier this year in favour of Dutch fintech startup Adyen, which is also thought to be plotting an IPO with a valuation of more than $1bn.

Sweden-based iZettle started out providing card readers to small businesses, making its mini white readers recognisable in many independent shops and cafes.

But it has also signalled its intent to expand into AI and cloud technology.

Read more: Faster Payments and Bacs joined to new body in payments shake-up

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