MasterCard joins EUR25m iZettle funding round
15 June 2012 | 12174 views | 10
Swedish start-up iZettle, which provides technology that turns mobile phones into card payment terminals, has raised EUR25 million in a series b funding round as it prepares to launch across Europe.
The round was led by Greylock Partners and Northzone and joined by MasterCard, SEB Private Equity and series a investors Index Ventures and Creandum.
IZettle recently began beta testing in the UK following huge success in its native Nordics, where it claims more than 50,000 users and to have increased the number of point of sale card acceptance terminals in the region by 10% in less than a year.
The firm says it will use the new money to launch in more European markets and elsewhere around the world where chip-cards are the standard - a stance that rules out the US.
IZettle is one of a raft of firms in the mobile card terminal market but has distinguished itself from US-based alternatives such as Square, PayPal, Verifone and Intuit with its chip-based, rather than mag-stripe, approach.
Laurel Bowden, a Greylock partner who is joining iZettle's board, says: "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. They've proved they're ready to step up their game in this very complex and competitive industry."
The firm is also bidding to extend its reach beyond the physical world, outlining plans earlier this week for an API that enables third-party developers to integrate its system into their apps.