Founded in Stockholm in 2010, iZettle claims to have revolutionised mobile payments with the world's first mini chip card reader and software for mobile devices.
"Small businesses are the engine of the global economy and they are increasingly demanding a partner that can provide a one-stop solution to help them compete and win online, in store and via mobile".
Based in Sweden, iZettle has built a presence in Europe and South America that will allow PayPal to bring its platform to almost 500,000 stores in 11 new countries including France, Germany, Brazil and Mexico. It turns out that iZettle represents PayPal's biggest acquisition by quite some distance. "iZettle and PayPal are a strategic fit, with a shared mission, values and culture-and complementary product offerings and geographies".
The price being paid by PayPal - itself valued at more than $90bn (£66bn) - is double the valuation that iZettle was reported to be seeking from a listing on Nasdaq Stockholm.More news: Wife of PGA golfer Lucas Glover arrested on domestic violence charges
Upon closing of the deal, PayPal will gain in-store capabilities in Brazil, Denmark, Finland, France, Germany, Italy, Mexico, Netherlands, Norway, Spain and Sweden. While it may raise some questions around the ambitions of European technology startups, given that iZettle had recently revealed its intentions to go public, it also revealed how eager PayPal is to boost its brick-and-mortar aspirations in Europe.
The $2.2bn also represents a massive financial windfall for the Swedish company, which, as of previous year, was still operating at a loss of approximately $27m.
IZettle expects to generate gross revenues of approximately $165 million Dollars in 2018, with approximately $6 billion USD of total payment volume (TPV) expected to be processed on its platform.
The company is still operating at a loss, according to IPO documentation.
The deal is expected to be sealed by the third quarter of this year.