iZettle

iZettle
Private
Industry Technology
Founded 2010
Founder Jacob de Geer, Magnus Nilsson
Headquarters Stockholm, Sweden
Website www.izettle.com
iZettle chip and PIN payment terminal and an iPhone 5, showing a payment being made.

iZettle is a mobile payments company based in Stockholm, Sweden and markets a single application and service called iZettle.[1][2] Jacob de Geer and Magnus Nilsson founded the company in April 2010 and launched its first app and service in 2011.[3][4]

The iZettle app and card readers allow individuals and small businesses in Sweden, Finland, Denmark, Norway, United Kingdom, Germany, France, Spain, Italy, Portugal, the Netherlands, Mexico and Brazil, to accept card payments on their iOS or Android smartphone or tablet.[5][6][7][8][9] The iZettle app supports both chip cards and magnetic stripe cards through the iZettle EMV-approved card readers through two plastic devices which either plug into the audio jack or connects wirelessly via Bluetooth to supported smartphones and tablets.[10][11] The app’s interface resembles that of a traditional cash register.

iZettle was one of the first companies to develop a chip-card reader and app for smartphone-based mobile commerce which meets international security requirements.[12][13][14]

iZettle Products

iZettle’s EMV-approved mobile payment solution allows small traders to take credit card payments, with a payment system integrated directly into an app, for a flat commission of 2.75%.[10][15][16][17] 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.[18]

Merchants use the service by downloading the app and by plugging an iZettle card reader into an iOS or Android device.[3] With iZettle’s free management software tool iZettle merchants can analyze credit card transactions and relay detailed information, i.e. top selling products and average payment volume.[3]

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 nine 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.[19][20]

iZettle’s solution achieved a MasterCard Best Practices certification in February 2013.[21]

In February 2015, iZettle introduced Lite Reader, a new card reader which it will offer to merchants free of charge. It can be used directly by plugging into the audio jack of iPhone, iPad or any Android device.[22][23]

History

Creation

Jacob de Geer and Magnus Nilsson founded iZettle in April 2010 and launched its first app and chip card reader in 2011.[4][24] 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.” [25]

iZettle is Jacob de Geer’s fourth start-up.[4] He was the first employee of TradeDoubler in 1999 and Ameibo and Tre Kronor Media in 2007.[26]

Growth

iZettle launched its dongle-based mobile applications app for iOS in Sweden August 2011 to meet the local demands of a market dominated by smart card technology.[27] The app worked initially with a Chip & Signature Card Reader.[19][26][28] The company launched the full version of the service in Sweden later that year.[28] Soon after launching, iZettle was listed as one of Tech Europe’s Pick of Stockholm Start-ups.[29]

iZettle became available for Android devices in August 2012, making the system available to non-iOS users.[30]

iZettle became Visa compatible in November 2012 when it added a new form of mobile payment to its list of services. Instead of using a chip-based reader, Visa customers entered the information manually onto a form, verified by their phone number. Due to a policy decision in August 2012 Visa was shut down in Europe. Visa acceptance was restored in Denmark, Finland and Norway in November 2012. To accept Visa payments in Denmark, Finland and Norway, iZettle had to introduce a third party option. Instead of using a chip-based card reader, Visa customers enter their phone number in the iZettle app on the merchants' phone and will then, via a text message, be directed to a secure site on their own smartphone where they can input their card details in a form. The customer gets an onscreen confirmation if the payment is accepted and the merchant receives a notification in the app that the sale has gone through.[15] The company replaced the roundabout method in February 2013 by introducing a new wireless Chip & Pin reading device more convenient for VISA customers.[31] This company 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.[18]

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.[32]

Financial

iZettle raised $11.2 Million in Series A Funding in October 2011, led by Index Ventures and Creandum.[4][19][28]

In May 2012, the company removed its fixed €0.15 transaction fee in favor of a flat 2.75% charge on sales for credit cards including American Express.[33][34]

In 2012, iZettle received $31.6M in Series B funding from investors including MasterCard, SEB Private Equity, American Express, Northzone, and Series A funders Index Ventures and Creandum.[2][6][12] The purpose of this funding is to introduce iZettle to additional European and International markets where chip cards are the standard.[12]

In May 2014, iZettle received $55.5 million in Series C funding from investors including Zouk Capital, Dawn Capital and Intel Capital, as well as previous investors Creandum, Greylock, Index, Northzone and SEB.[35]

Areas served

iZettle serves individuals and small businesses in nine countries including Scandinavia, parts of Europe, the United Kingdom, Mexico and Brazil.[1][5][6][9][36][37]

In 2012, the company expanded into the United Kingdom, Germany, and Spain corresponding to the launch of its new Chip & Sign system and partnership with MasterCard, American Express, and Diner’s.[6][38] The pilot program began in Great Britain with iZettle offering 3,000 free mini card readers to British merchant testers.[33][38]

The company launched its card service in Mexico in June 2013 and in Brazil in August 2013, marking the first time the company has operated outside of Europe.[1][9]

Technology

iZettle’s technology converts smartphones into credit-card processors with the help of Chip & Pin and Chip & Signature card readers.[14][39] 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.[14][40] After a transaction is completed, buyers can choose to have a receipt and photograph of what they purchased e-mailed to them.[41]

iZettle applications and services are compatible with Swedish FSA regulations.[42]

References

  1. 1 2 3 Ben Rooney (18 Jun 2013). "iZettle Launches Card Service in Mexico". The Wall Street Journal. Retrieved 9 September 2013.
  2. 1 2 "iZettle". 9 Jul 2013. Retrieved 9 September 2013.
  3. 1 2 3 Liam Tung (4 Apr 2013). "iZettle adds new loyalty analytics features as it squares up to Square". ZDNet. Retrieved 9 September 2013.
  4. 1 2 3 4 Peter Cohan (19 Oct 2011). "iZettle Let's Europe's Mom-and-Pops Take Chip-Cards". Forbes. Retrieved 9 September 2013.
  5. 1 2 Rory Cellan-Jones (6 Nov 2012). "iZettle and the modernisation of money". BBC. Retrieved 9 September 2013.
  6. 1 2 3 4 Mike Butcher (30 Oct 2012). "The Square-like iZettle Launches in Germany with DZ BANK and Deutsche Telekom, Puts Heat on Payleven". Tech Crunch. Retrieved 9 September 2013.
  7. ↑ Rich Trenholm (25 May 2011). "iZettle iPhone credit card reader pays your bills with your phone". CNET. Retrieved 9 September 2013.
  8. ↑ Nic Fildes (16 May 2012). "Smart approach to paying by card" (PDF). The Times. Retrieved 9 Jul 2013.
  9. 1 2 3 Robin Wauters (27 August 2013). "iZettle launches its card reader and mobile payment service in Brazil". The Next Web. Retrieved 22 October 2013.
  10. 1 2 "iZettle starts accepting AmEx in Sweden and Finland". Finextra. 8 May 2012. Retrieved 9 September 2013.
  11. ↑ "Supported smartphones and tablets". iZettle. Retrieved 8 Jul 2013.
  12. 1 2 3 Ben Rooney (15 June 2012). "iZettle Closes $31.6 Million Expansion Round". Tech Europe. Retrieved 9 September 2013.
  13. ↑ Tim Green (20 May 2011). "iZettle to bring Square-style mobile payments service to Europe". mobileentertainment. Retrieved 9 September 2013.
  14. 1 2 3 Ben Rooney (24 May 2011). "App Turns Any iPhone Into Credit Card Reader". The Wall Street Journal. Retrieved 9 September 2013.
  15. 1 2 Loek Essers (13 Nov 2012). "Startup iZettle settles mobile payments". Computer World. Retrieved 9 September 2013.
  16. ↑ Ingrid Lunden (12 June 2012). "Europe's Square, iZettle, Goes One Step Further: Launches API to Integrate Payments Into Apps". TechCrunch. Retrieved 9 September 2013.
  17. ↑ Henry Mance (11 Jun 2013). "Santander backs iZettle to promote paying by card" (PDF). Financial Times. Retrieved 9 September 2013.
  18. 1 2 Mike Butcher (20 Feb 2013). "iZettle Launches Wireless Chip & Pin, Stars Taking Visa and Partners with Santander". TechCrunch. Retrieved 9 September 2013.
  19. 1 2 3 "iZettle, Europe's Square, Releases An SDK For Direct Mobile Payment Integration On iOS". Tech Crunch. 23 Jan 2014. Retrieved 11 February 2013.
  20. ↑ "iZettle's new SDK lets devs add payment solutions to their apps". Mobile Entertainment. 23 Jan 2014. Retrieved 11 February 2013.
  21. ↑ "19 Mobile Point-of-Sale (MPOS) Solutions Achieve MasterCard Best Practices Certification". MasterCard. 27 Feb 2013. Retrieved 9 September 2013.
  22. ↑ https://www.izettle.com/gb/blog/111264793941/say-hello-to-card-reader-lite
  23. ↑ Sundar Kumar JVS (17 February 2015) To Grow Merchant Customers, iZettle Slashes The Cost Of Its Card Readers To Zero, Techcrunch, Retrieved ( 24 February 2015)
  24. ↑ Dusan Belic (2 May 2011). "iZettle iPhone credit card reader works with smart cards". intomobile. Retrieved 9 September 2013.
  25. ↑ Robin Wauters (13 Aug 2012). "Payment startups clash: Cease-and-desist letter from iZettle forces Settle to change name to Droplet". The Next Web. Retrieved 9 September 2013.
  26. 1 2 Bill Robinson = publisher = Huffington Post (20 November 2011). "High-Tech Startup Focus: iZettle -- the New, Better Square -- Coming Soon to America?". Retrieved 9 September 2013.
  27. ↑ Michael Grothaus (18 Aug 2011). "iZettle credit card reader for iPhone now available in Sweden in limited numbers". Túaw. Retrieved 9 September 2013.
  28. 1 2 3 Martin Bryant (14 Nov 2011). "Europe's Square rival iZettle officially launches its iOS card payments service". The Next Web. Retrieved 9 September 2013.
  29. ↑ Ben Rooney (21 Sep 2011). "Tech Europe's Pick of Stockholm's Start-Ups". The Wall Street Journal. Retrieved 9 September 2013.
  30. ↑ Bobbie Johnson (21 Aug 2012). "iZettle goes to Android, lays out a challenge to Square and its rivals". GIGAOM. Retrieved 9 September 2013.
  31. ↑ Mike Butcher (20 Feb 2013). "iZettle Launches Wireless Chip & Pin Devices, Starts Taking Visa And Partners With Santander". TechCrunch. Retrieved 13 Jul 2013.
  32. ↑ "Mpos firms join Visa Ready Program". Finextra. 5 June 2013. Retrieved 9 July 2013.
  33. 1 2 Robin Wauters (16 May 2012). "Europe's Square rival iZettle to ship 3,000 card readers to UK testers, warms up for summer launch". The Next Web. Retrieved 9 September 2013.
  34. ↑ Greg Anderson (10 May 2012). "iZettle Drops Fixed Transaction Fee". Arctic Startup. Retrieved 9 September 2013.
  35. ↑ "As Square Struggles, European Payments Rival iZettle Takes Another $55.5M In Funding". 8 May 2014. Retrieved 13 May 2014.
  36. ↑ "about". iZettle. Retrieved 9 September 2013.
  37. ↑ Manuel Angel Mendez (20 Oct 2012). "They mobile payments iZettle". El Pais Technology. Retrieved 9 September 2013.
  38. 1 2 Bobbie Johnson (16 May 2012). "iZettle, Europe's rival to Square hits the UK". GIGAOM. Retrieved 9 September 2013.
  39. ↑ Rachel Botsman (11 Jul 2011). "Smart tech and sharp thinking are disrupting high-street banks". Wired. Retrieved 9 September 2013.
  40. ↑ iZettle. "Security". Retrieved 9 September 2013.
  41. ↑ Zach Honig (28 Apr 2011). "iZettle's chip-reading Square competitor will take your money, no swipes required". engadget. Retrieved 9 September 2013.
  42. ↑ "iZettle AB". Finansinspektionen. Retrieved 9 September 2013.

External links

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