iZettle banks USD6.6m from Santander for mobile payments

IZettle

Received investment

Swedish payment service iZettle has received more than EUR5m (USD6.6m) in funding from European banking giant Banco Santander. iZettle allows small businesses or individuals  to accept card payments from their smartphones or tablets through a card reader attachment and free android and iOS apps.

The company does not charge set up fees or require a minimum transaction, instead taking a 2.75% flat cut of each purchase. Claiming to have attracted 100,000 merchants across the UK, Spain, Germany, Sweden, Denmark, Norway and Finland, the new capital brings the startup’s funding to more than USD55m.

iZettle has also penned a partnership with Santander UK to enable the bank’s customers there to make use of the service. The company claims that the partnership comes in the wake of research finding that 39% of UK consumers are likely to avoid a business that does not allow card transactions or requires a minimum spend. Santander is also offering a GBP50 (USD77) cash rebate for any businesses that buy an iZettle card reader connected to a Santander account. The partnership may also be used by iZettle to venture into new market as Santander has operations in Latin America, Portugal, Germany, Poland and the US. However ,the company says it is planning to focus on building its transaction volume around Europe before trying to enter the US market, where rival Square is already carving out a considerable market share.

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