A Square-like European start-up, called iZettle, that turns phone handsets into card payment terminals, has officially launched in Sweden.
Following a closed beta, the iZettle application for iPad, iPhone and iPod touch has now gone live on the Swedish App Store.
The system lets users accept low value payments by simply entering the amount and customer's card number in the app.
However, for bigger payments, merchants attach a plastic card reader to their device which automatically opens the app. They then enter the payment amount and the customer signs on the device's screen, adding an e-mail address if they want a receipt.
The company charges 2.75% of the sale plus 1.50 SEK for each transaction but is throwing in the reader for free for the first 2000 customers to sign up.
IZettle says security is "at the heart of our business" and it has received the approval of EMV and says it adheres to PCI-DSS data handling requirements.
Although it works with chip, not mag-stripe, cards, the system is similar to that offered by US outfit Square, which has proved a big hit in the US, recently raising $100 million in a series c funding round, valuing the start-up at $1 billion.
Jacob de Geer, founder, iZettle, says: "Whether you're a merchant with a storefront, a plumber working in someone's home, selling produce at the farmers market or settling the bar bill between friends, iZettle makes payments convenient from your iPad, iPhone or iPod touch."