PayPal is Buying This Square Rival Company

PayPal Holdings said on Thursday that it will be acquiring Square competitor iZettle in a deal worth $2.2 billion.

iZettle is a Swedish point-of-purchase technology firm. Through the deal, PayPal will have access to almost 500,000 small businesses that use iZettle’s technology to process customer transactions involving credit cards. There are 11 countries where the small businesses are active with most in Europe as well as Mexico and Brazil.

By acquiring iZettle, PayPal would have a direct competition with Square and it’s the largest acquisition in PayPal’s history according to the Wall Street Journal.

“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,” stated PayPal President and CEO Dan Schulman.

“iZettle and PayPal are a strategic fit, with a shared mission, values and culture—and complementary product offerings and geographies,” he added.

Disclaimer: We have no position in Paypal Holdings Inc. (NASDAQ: PYPL) nor Square Inc. (NYSE: SQ) and have not been compensated for this article.