22 July 2018
Visit www.gemalto.com

Finextra TV: iZettle launches in the UK

07 November 2012  |  12184 views  |  4 iZettle1

Swedish start-up iZettle, which provides technology that turns mobile phones into payment terminals, has teamed up with wireless operator EE to launch in the UK.

The iZettle app and card reader, which works with iPhones, iPads and more than a dozen Android handsets, enable merchants to accept card payments through their phones.

Initially, the dongles will be available to buy at EE's 297 stores and through its tele-sales channel for £20, with buyers also receiving a £20 voucher towards the transaction fees.

These fees are set at 2.75%, with the firm targeting small businesses and tradesmen. According to an EE survey, the UK's plumbers, electricians and builders are currently owed up to £283 million by late or non-paying customers.

At the launch in London yesterday, Marion King, president, UK and Ireland, MasterCard - which is an iZettle investor - tested the system with online jewellery retailer My Flash Trash: 

The iZettle device is EMV-approved and generally works on a 'chip and signature' basis on the phone. In the UK, a merchant using iZettle can accept MasterCard, American Express, Diners Club and Visa.

However, Visa Europe's rules and regulations mean that payments are not accepted via the card reader. Instead a text message, with an embedded URL, is sent via the merchant to the purchaser's phone and the card details are entered at a secure Web site. The compromise comes after much wrangling, with iZettle unable to accept Visa payments during its six month, 4000 participant-strong UK beta phase.

Jaqcob de Geer, CEO, iZettle, says: "The beauty of iZettle is that it's simple to use, totally secure and takes seconds for transactions. Whether you are a cabbie, florist, tradesperson or a courier, iZettle gives you the flexibility to operate in both cash and cards."

De Geer, King and EE chief marketing officer Gerry McQuade, discussed the launch in a special panel: 

The full UK launch comes on the heels of iZettle's arrival in Germany through a partnership with DZ Bank and Deutsche Telekom. In Sweden, Denmark, Finland and Norway, the start-up already claims more than 75,000 customers.

However, it faces plenty of competition from the likes of PayPal, German-based Payleven and London-headquartered mPowa, while, across the Atlantic, market leader Square is expected to make an international push.

KeywordsE-COMMERCE

Comments: (4)

A Finextra member
A Finextra member 07 November, 2012, 07:39

In Scandinavia this device is mostly used by consumers paying monies to each other for private sales of second hand items. The vast majority of transactions and turnover is consumer to consumer payments and not consumer to small business. It is sold through channels attracting mostly consumer customers like appliances store catalogues. It seems like the card schemes are opening up merchant point of sale payments to be used also for consumer to consumer payments normally dominated by the credit transfers. In iZettle the issuer is earning interchange revenue on these consumer payments while this revenue source is prohibited for credit transfer type of payments in the sepa end date regulation. Cunning! 

1 thumb up! 1 thumb up!
Craig Lawrance
Craig Lawrance - Starkspur Ltd - Chalfonts 07 November, 2012, 08:57

This is a step forward for increasing electronic payments. But please help me understand how chip and "signature" will not attract more card fraud.  Or is the signature somehow captured and compared with an electronic profile?

Is 2.75% really enough to pay for all that additional fraud?

Be the first to give this comment the thumbs up 0 thumb ups!
David Abbott
David Abbott - Nourpay - Riyadh 07 November, 2012, 09:58

Craig-  the fraud will be dependent on the type of merchant and goods sold - generally tradesmen (for example) perform work at an address -  if you want to pay for your plumbing with a stolen card fine, but expect to have an irate plumber on your doorstep sometime soon!  This is going to be horses for courses.... I understand Square have some very strange settlement interruption rules when it comes to fraud management.. as with all these things, time will tell. Personally I think this is one form of Mobile Commerce that has a real opportunity to flourish and also move into the developing world in a very meaningful way.  I wish IZettle every success

1 thumb up! 1 thumb up!
Chris Harris
Chris Harris - Ingenico - London 07 November, 2012, 14:53

Great to see iZettle bringing solutions to latent under-served markets; from Home Hairdressers to Skip Hire, consumers will no longer have to fumble around kitchen draws to find chequebooks. As an industry we should do all we can to prevent fraud but please let keep things in perspective and not lose sight of the overwhelming vast majority of payments that are honest and legitimate but inconvenienced by lack of availability or stifled by authentication protocols so obviously tacked on to dated processes. In today's social, always on, connected multi-channel world having a different payment method and process for each is not sustainable. Good luck to the innovators of our industry that dare to question the cosy norms of the payments. 

1 thumb up! 1 thumb up!
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

IZettle arrives in Germany

IZettle arrives in Germany

30 October 2012  |  8497 views  |  0 comments | 11 tweets | 5 linkedin
Square arrives in Canada

Square arrives in Canada

24 October 2012  |  6866 views  |  1 comments | 11 tweets | 1 linkedin
AmEx invests in iZettle; O2 launches PINpad for mobile payments

AmEx invests in iZettle; O2 launches PINpad for mobile payments

23 October 2012  |  11011 views  |  0 comments | 14 tweets | 3 linkedin
Payleven launches chip and PIN-based Square clone

Payleven launches chip and PIN-based Square clone

03 October 2012  |  11688 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  |  14323 views  |  3 comments | 3 tweets
IZettle starts testing Android app with Samsung

IZettle starts testing Android app with Samsung

23 July 2012  |  8971 views  |  4 comments
MasterCard joins EUR25m iZettle funding round

MasterCard joins EUR25m iZettle funding round

15 June 2012  |  13128 views  |  10 comments
IZettle releases API for app developers

IZettle releases API for app developers

13 June 2012  |  8079 views  |  1 comments
European equivalent of Square, iZettle, commences UK beta trials

European equivalent of Square, iZettle, commences UK beta trials

16 May 2012  |  9504 views  |  4 comments
MPowa launches UK's Square

MPowa launches UK's Square

23 January 2012  |  22003 views  |  11 comments
Sweden's Square hits App store

Sweden's Square hits App store

19 August 2011  |  15854 views  |  4 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit http://go.jumio.com/finextraAdVisit iliad-solutions.com/Visit info.nice.com

Who is commenting?

Top topics

Most viewed Most shared
Calmejane quits Lloyds Bank to join SocGenCalmejane quits Lloyds Bank to join SocGen
13567 views comments | 6 tweets | 8 linkedin
Hong Kong plans September go-live for blockchain-based trade financeHong Kong plans September go-live for bloc...
11238 views comments | 9 tweets | 17 linkedin
Mastercard enlists Worldpay to push Vocalink's Pay by Bank appMastercard enlists Worldpay to push Vocali...
10109 views 19 comments | 15 tweets | 30 linkedin
IBM to test dollar-pegged 'stablecoin'IBM to test dollar-pegged 'stablecoin'
7444 views comments | 4 tweets | 14 linkedin
Bringing about new systems and faster payments globallyBringing about new systems and faster paym...
7258 views comments | 2 tweets | 7 linkedin

Featured job

Find your next job