As rumors of financial issues at mobile payments provider Square swirl, Swedish rival iZettle is refueled and ready to expand.
The Stockholm-based payments processing startup today announced a €40 million funding round (roughly $55.5 million), bringing its total financing to around $100 million.
Like Square, iZettle enables merchants to process credit card transactions through a small, handheld device that links with a smartphone app. But unlike Square, iZettle’s reader identifies credit card pin-and-chip tech, which is widespread in Europe. It offers greater security than a credit card’s magnetic stripe, as the chip embedded in each card encrypts consumers’ personal info.
iZettle also offers basic sales analytics for merchants. It earns revenue through transaction fees.
iZettle’s service is active in nine countries: the U.K., Sweden, Spain, Germany, Denmark, Norway, Finland, Mexico, and Brazil. With the new financing, it plans to expand further into Latin America and Europe. It also intends to expand its non-payment offerings for merchants.
London-based Zouk Capital led iZettle’s new funding round, which also saw participation from Intel Capital, the investment arm of the U.S. chip maker, and Zouk Capital. Some of iZettle’s previous investors contributed to its new investment, including Creandum, Greylock Partners, Index Ventures, Northzone, and SEB Private Equity.
Mobile payments processing is beginning to take off, but there’s a lot of room for improvement across the board — both at payments giants like PayPal and at startups like Square and iZettle. The market has certainly seen its share of troubled launches (we’re looking at you, Clinkle). Still, huge opportunity awaits companies that can successfully bridge the worlds of finance and mobile tech.