IZettle

History

Jacob de Geer and Magnus Nilsson founded iZettle in April 2010 and launched its first app and chip card reader in 2011. The name “iZettle” derives from the expression “settling a debt.” The founders wanted a name that described what the company would do. They decided on a stylized combination of the words “I” and “Settle.”

iZettle is Jacob de Geer’s fourth start-up. He was the first employee of TradeDoubler in 1999 and Ameibo and Tre Kronor Media in 2007.

iZettle launched its mobile applications app for iOS in Sweden August 2011 to meet the local demands of a market dominated by smart card technology. The app worked initially with a Chip & Signature Card Reader. The company launched the full version of the service in Sweden later that year. Soon after launching, iZettle was listed as one of Tech Europe’s Pick of Stockholm Start-ups. iZettle became available for Android devices in August 2012, making the system available to non-iOS users.

iZettle entered a partnership with Banco Santander in February 2013, the Eurozone’s largest bank by market capitalization, who would invest more than €5M in iZettle in June 2013, giving the company access to Santander’s customers in the UK, Spain, Mexico and Brazil.

Visa signed iZettle to its Visa Ready Program in June 2013, giving the startup access to tools for further developing mag stripe and mobile acceptance systems. iZettle’s solution achieved a MasterCard Best Practices certification in February 2013.

Products and services

iZettle offers financial and other services to meet the needs of small businesses within the following four core areas.

Payments

iZettle offers a card acceptance service which enables small businesses to take credit and debit card payments. . In 2013, iZettle upgraded its system to include a Chip & Pin device alongside its previous model, allowing it to accept all major credit cards, including MasterCard, American Express, and Visa. In February 2015, iZettle introduced Lite Reader, a new card reader which was offered to merchants free of charge. It was used by plugging it into the audio jack of iPhone, iPad or any Android device. In June 2016, iZettle launched a new card terminal. Just as its previous siblings the iZettle reader connects through bluetooth and integrates both Chip & PIN and contactless payments. The new card reader replaced all previous card readers in Europe and iZettle was the first mobile payments company to accept contactless payments in the UK. The card reader accepts all major cards including MasterCard, Visa and American Express.

Point of sale

iZettle offers a software solution, the iZettle app, to record, manage and analyze sales. The first version of the iZettle app was launched in 2011 but then only supported iOS, since 2012 the iZettle app is also compatible with Android. With iZettle’s free software solution merchants can analyze credit card transactions and relay detailed information, i.e. top selling products and average payment volume. In September 2016, iZettle acquired Intelligentpos to expand from mobile payments to broaden their suite of products within commerce solutions, and essentially within the hospitality sector. Intelligentpos, similar to iZettle, offers a cloud-based software solution that helps with functionalities such as inventory, loyalty programs and customer flow.

Small business loans

In 2015 iZettle launched iZettle Advance, a small business financing service built upon the transaction data gathered at the point of sale. The offer is based on the users sales history with iZettle. Repayment is tied to sales. The service is available in Europe.

Partner applications

iZettle also offers access to third party applications such as accounting software. iZettle launched its first SDK (software development kit) in January 2014. The SDK kit provides developers with the ability to add payment services to their mobile apps. It can be used in any of the countries iZettle is currently live in, allowing for users to take payments via the app from iZettle’s Chip and Pin reader, and return relevant information to the software to generate receipts.

Security

With the system, credit card information isn’t stored over the phone, but is processed through iZettle’s encrypted connection. The phone operates as a secure modem. After a transaction is completed, buyers can choose to have a receipt and photograph of what they purchased e-mailed, texted or printed to them. The iZettle service meets all the european card industry security requirements, EMV approved and comply with the Payment Card Industry Data Security Standard, PCI DSS. iZettle applications and services are compatible with Swedish FSA regulations.

Markets

iZettle serves small businesses in 12 countries including Scandinavia, parts of Europe, the United Kingdom, Mexico and Brazil.

The iZettle service was first launched in Sweden 2011, followed by Denmark, Finland and Norway. In 2012, the company expanded into the United Kingdom, Germany, and Spain. The company launched its service in Mexico in June 2013 and in Brazil in August 2013, marking the first time the company has operated outside of Europe. iZettle later on launched its service in the Netherlands, France and Italy.

iZettle is based in their headquarters in Stockholm, Sweden, but also have offices in Germany, United Kingdom, Brazil and Mexico.

Funding and value

iZettle have had 5 rounds of Funding:

In October 2011, iZettle raised €8,2 Million in Series A Funding, led by Index Ventures and Creandum. In June 2012, the company received €25 Million in Series B Funding, led by 83North and Norhzone, MasterCard, SEB Private Equity, American Express, and Series A funders Index Ventures and Creandum. In June 2013, iZettle received €5 Million in an Undisclosed Series with only Santander InnoVentures as funder. In May 2014, iZettle received €40 Million in Series C Funding, led by Zouk Capital LLP, followed by 83North, American Express Ventures, Creandum, Dawn Capital, Hasso Plattner Ventures, Index Ventures, Intel Capital, MaterCard, Northzone, Santander InnoVentures and SEB Private Equity. In August 2015, the company raised €60 Million in the Series D Funding led by Intel Capital and Zouk Capital LLP and followed by 83North, American Express Ventures, Creandum, Dawn Capital, Hasso Plattner Ventuers, Hermes GPE Environmental Innovation Fund, Index Ventures, MasterCard, MCI Capital SA, Northzone, Santander InnoVentures and SEB Private Equity.

These fundings makes iZettle one of the best backed fintech companies on the continent. With the Series D round in August 2015, iZettle was valued for over USD 500 Million.