01 October 2016
Find out more

AmEx invests in iZettle; O2 launches PINpad for mobile payments

23 October 2012  |  10277 views  |  0 iZettle1

Swedish start-up iZettle, which provides technology that turns mobile phones into payment terminals, has expanded its series b funding round with the addition of American Express.

The development sees AmEx become the second major card firm to join the round, following in the footsteps of MasterCard which signed on in June, along with Greylock Partners, Northzone, SEB Private Equity, and Series A investors Index Ventures and Creandum.

Werner Decker, SVP, merchant services Europe, AmEx, says: "The payments landscape is changing rapidly and we believe iZettle's solution will play an important role in helping to further enable commerce - especially in small merchant segments that have historically relied on cash - by delivering a smart and convenient way for small businesses to accept consumer payments."

IZettle has not revealed how much AmEx has invested to add to the initial round of EUR25 million but says the money will be used for product development and expansion into new markets.

The most immediate target is the UK, where the firm is already beta testing its technology ahead of a wider European roll out. In the Nordics, it claims to have increased the number of point-of-sale credit card terminals by more than 10% since the company began operations in Sweden last August, and expanded to Denmark, Finland and Norway in February this year.

However, while it may have secured the blessing of MasterCard and AmEx, iZettle has fallen foul of Visa. In July it was forced to stop processing Visa card transactions in Denmark, Finland and Norway over security concerns.

In the meantime, another dongle and app-based outfit Payleven has launched, building a keypad into its reader for PIN verification to meet Visa's standards. Another rival, mPowa is currently building its own keypad dongle and asking customers not to use its old swipe hardware.

And today, wireless carrier O2 launched a PINpad device, which works with Visa, MasterCard and Amex, connecting to a mobile phone via bluetooth for accepting payments via Android phone or tablet or BlackBerry smartphone. The company is also working on aversion for iPAD and iPhone.

The O2 PINpad costs £150 upfront or £15 per month for 12 months, with credit card transaction fees of 2.95% or £0.75 for debit cards.
KeywordsEFTPOS

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

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

Related stories

Square cuts New York taxi pilot short

Square cuts New York taxi pilot short

16 October 2012  |  8482 views  |  0 comments
Payleven launches chip and PIN-based Square clone

Payleven launches chip and PIN-based Square clone

03 October 2012  |  11031 views  |  0 comments | 1 linkedin
MPowa reports First National Bank deal; denies own claims on Visa acceptance

MPowa reports First National Bank deal; denies own claims on Visa acceptance

01 October 2012  |  13253 views  |  3 comments | 3 tweets
Payworks brings mobile commerce to Oktoberfest

Payworks brings mobile commerce to Oktoberfest

25 September 2012  |  5471 views  |  0 comments
Latest Square clone launches in Europe

Latest Square clone launches in Europe

24 August 2012  |  9381 views  |  0 comments
IZettle starts testing Android app with Samsung

IZettle starts testing Android app with Samsung

23 July 2012  |  8385 views  |  4 comments
MasterCard joins EUR25m iZettle funding round

MasterCard joins EUR25m iZettle funding round

15 June 2012  |  11848 views  |  10 comments
IZettle releases API for app developers

IZettle releases API for app developers

13 June 2012  |  7066 views  |  1 comments
Sweden's iZettle hires Barclaycard's Roberts ahead of UK launch

Sweden's iZettle hires Barclaycard's Roberts ahead of UK launch

27 February 2012  |  12997 views  |  4 comments
Sweden's Square hits App store

Sweden's Square hits App store

19 August 2011  |  13863 views  |  4 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit www.dh.comVisit www.abe-eba.euVisit i2cinc.com

Top topics

Most viewed Most shared
Ripple rudely gatecrashes Sibos partyRipple rudely gatecrashes Sibos party
11092 views comments | 35 tweets | 33 linkedin
BNP Paribas is working with clients on blockchain deploymentBNP Paribas is working with clients on blo...
7972 views comments | 15 tweets | 31 linkedin
Banks ready for real-world blockchainBanks ready for real-world blockchain
7059 views comments | 22 tweets | 29 linkedin
PayPal and Lenovo team on biometric authentication for laptopsPayPal and Lenovo team on biometric authen...
6818 views comments | 13 tweets | 16 linkedin
Distributed ledger technology could damage financial market integration - ECBDistributed ledger technology could damage...
6286 views comments | 15 tweets | 10 linkedin

Featured job

Find your next job