13 February 2016

IZettle starts testing Android app with Samsung

23 July 2012  |  8115 views  |  4 iZettle Android

Sweden's iZettle has teamed up with Samsung to start testing an Android version of its dongle and app system for turning mobile phones into credit card readers.

Since hitting Apple's app store in Sweden last August and expanding into Denmark, Finland and Norway earlier this year, iZettle claims to have signed up more than 50,000 users and increased the number of POS terminals in the Nordics by 10%.

With EUR25 million secured last month in a funding round joined by MasterCard, the start-up is preparing to attack the rest of Europe, beginning with the UK, where trials are already underway.

The firm is also now looking to expand beyond Apple devices, targeting Android users, who make up 60% of the worldwide smartphone operating system market.

Swedish owners of Samsung Galaxy S II, S III, and Galaxy Note devices can download a free iZettle app from Samsung Apps, with 500 participants receiving free readers. The Android app has the same features as the iOS version although the reader plugs into the device's audio jack.

Jacob de Geer, CEO, iZettle, says: "This partnership is the start of something very, very big. We are thrilled to expand our service to Samsung Android users and enable more people to take secure card payments".

Comments: (4)

A Finextra member
A Finextra member | 23 July, 2012, 11:36

In Scandinavia most of the iZettle device holders are private individuals and not merchants. How is it possible for a private person to take payments via cards? Is it OK to use a regular payment terminal connected to the land based phone network and charge friends and relatives for monies they owe?

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Eduard Literate
Eduard Literate - DC Bank - Calgary | 23 July, 2012, 17:37

"How is it possible for a private person to take payments via cards?"

In general, if you want to accept credit cards, you need to contract with a credit card acquirer to obtain a merchant account.  The acquirer will check your credit, ensure you have a legitimate business and set a limit as to how much credit card processing you can do.  Credit card processing is very much like applying for a loan/borrowing money - the acquirer settles the proceeds of transactions into your account and then waits to get paid from the institution that issued the card to the cardholder.

With Square, iZettle and the numerous other companies offering acquiring services using a dongle, you don't need to contract separately with an acquirer to obtain a merchant account.  In essence, the supplier of the dongle is aggregating all of its customers under its own merchant account.  Prior to Square, aggregating merchants under one account was very much frowned upon by the Card Associations. Now, Square and iZettle etc. are managing the risk(s) that the acquirer was previously - they are on the hook for fraudulent transactions, chargebacks, etc.  

Although it seems like a fabulous idea to sign up for credit card processing as a micro merchant or individual, there are generally monthly fees and minimum charges.  Most users of these new services simply don't do enough business to justify accepting credit cards.  

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Phil Chant
Phil Chant - NCR Australia - Sydney | 24 July, 2012, 03:42

Hang on a minute, what about EMV/PCI compliance?  It is OK to swipe a credit card and sign for it but entering the PIN on the screen of the iPhone (or iPad) is not EMV/PCI compliant.

Eventually, the PIN entry must be done on a compliant keypad (ie, the same device that you stick your credit card into).  As soon as the compliance becomes legislated, this will be an outmoded and potentially risky transaction for both consumer and merchant.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Eduard Literate
Eduard Literate - DC Bank - Calgary | 24 July, 2012, 15:59

Phil - iZettle is an EMV compliant card reader.  That's their value proposition.  And remember, not everyone has the same Chip and PIN rules as Australia.  In the USA, they have announced Chip without PIN.  

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

12 July, 2012
15 June, 2012
13 June, 2012
16 May, 2012
08 May, 2012
16 March, 2012
27 February, 2012
23 January, 2012
10 January, 2012
19 August, 2011

Related company news


Top topics

Most viewed Most shared
UK sets out open banking API frameworkUK sets out open banking API framework
15416 views comments | 100 tweets | 89 linkedin
Deutsche Bank calls for co-operation with fintech firms on B2B servicesDeutsche Bank calls for co-operation with...
8412 views comments | 28 tweets | 30 linkedin
How to accelerate your fintech startupHow to accelerate your fintech startup
8026 views comments | 34 tweets | 9 linkedin
Is Paym a failure?Is Paym a failure?
6798 views 16 comments | 23 tweets | 16 linkedin
Visa issues API to offer consumer control over card transactionsVisa issues API to offer consumer control...
6279 views comments | 17 tweets | 28 linkedin

Featured job

Find your next job