Swedish Card-Reader Startup iZettle Raises More Cash -- Update
August 28 2015 - 7:10AM
Dow Jones News
By Dominic Chopping and Jens Hansegard
STOCKHOLM-Sweden's iZettle, a startup that makes credit-card
readers that turn mobile devices into portable teller machines, has
raised an additional €60 million ($68 million) in equity to help
launch a new service that offers cash advances to small
businesses.
The most recent investment values the company at more than $500
million, according to a person familiar with the matter. It comes
as venture-capital investment in European payments companies is
surpassing dotcom boom levels, boosted by the fast take-up of
digital technologies and shifts in consumer behavior.
With the new credit service, the Stockholm-based company said on
Friday that it will begin to provide cash advances to merchants
that use the iZettle card reader. iZettle will judge the credit
risk by looking at users' transaction history and loans will be
repaid to iZettle as a cut of future sales.
"Small companies have persistently been underserved by the
traditional finance industry," iZettle Chief Executive and
co-founder Jacob de Geer said.
iZettle's move into cash advances follows the footsteps of U.S.
rival Square Inc., which, prompted by the low margins of the
credit-card transactions business, last year rolled out a
small-business lending program. The latest round of financing, led
by previous investors Intel Capital which is the venture arm Intel
Corp., and by Zouk Capital, brings the total financing that iZettle
has raised to date to about €150 million.
iZettle, which operates in 11 countries, including the U.K. and
Brazil, said its cash-advances program will initially be available
in Europe.
Write to Jens Hansegard at jens.hansegard@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
August 28, 2015 07:55 ET (11:55 GMT)
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