iZettle Lands €25 Million ($31.4 Million) In Series B Funding
iZettle, the social payments company, today announced it has completed a €25 million ($31.4 million) Series B round of funding led by Greylock Partners and Northzone. MasterCard, SEB Private Equity and Series A investors Index Ventures and Creandum are also participating in the round.
iZettle, which turns an iPhone or iPad into a credit card terminal using a mini chip-card reader and app, is available throughout the Nordics, and is now being tested for commercial release in the U.K. The Series B funds will be used to introduce iZettle in additional European markets and elsewhere around the world where chip-cards are the standard.
“iZettle is the first and only company to develop an affordable chip-card reader and app for smartphone-based mobile commerce that meets all of the rigorous international security requirements,” said Laurel Bowden, Greylock’s partner in London who is joining iZettle’s board of directors. “They’ve proved they’re ready to step up their game in this very complex and competitive industry.”
iZettle’s chip and signature solution has been an instant hit among small business owners and individual service providers, increasing the number of point of sale (POS) credit card terminals in the Nordics by 10 percent since the company began operation in Sweden last August and expanded to Denmark, Finland and Norway in February this year.
“There are currently about 20 million small businesses in Europe that only take cash or invoices, according to Eurostat. That’s a huge opportunity that only iZettle can address right now,” said Index Ventures partner Ben Holmes
iZettle takes just minutes to set up and has no monthly fee. Instead, for each transaction using iZettle in Sweden, for example, users are charged 2.75% for MasterCard, Visa and Diners Club card payments, and 3.75% of American Express payments.
iZettle is EMV (Europay, MasterCard and VISA) approved, and compliant with the Payment Card Industry Data Security Standard (PCI-DSS). No sensitive data is ever stored on the mobile device or iZettle reader, and all data traffic is encrypted.
About Greylock Partners
Greylock partners with entrepreneurs to help them build market-leading businesses. Over the past 45 years the firm has worked with hundreds of companies, 150 of which have gone on to IPOs and 100 of which have gone on to profitable M&A events. Such companies include Ascend Communications Aeroscout, CheckFree, Constant Contact, Data Domain, DoubleClick, Facebook, Groupon, Imperva, Legato, LinkedIn, Openwave, OutlookSoft, Pandora, RightNow Technologies, Success Factors, Tellabs, Trilogy, Wannova, Wily Technology and ZipCar. Current Greylock portfolio companies include Actifio, AirBnB, Cloudera, DropBox, JustEat, mySupermarket, One Kings Lane, Picarro, Redfin, ScaleIO, Workday and Zerto. For more information, please visit www.greylock.com.
Northzone is a technology investment partnership. With four offices and nine investment professionals across the Nordics and most recently the UK, Northzone’s focuses on backing stellar teams building disruptive companies in attractive markets. Since its inception in 1996, Northzone has invested in over 80 companies, injecting some 200 years of collective operational and investment experience into businesses that truly make a difference. Notable investments include Lastminute.com, Pricerunner, Spotify, Nextgentel, Funcom, Stepstone, Nimsoft, EPiServer, Avito and Mamut. For more information, please visit www.northzone.com.
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