IZettle, whose free app and chip-card reader lets anyone take payments anytime, anywhere using their iPad, iPhone or iPod touch, today announced the successful completion of its test phase and the start of commercial availability.
"In fewer than 90 days iZettle has grown the Swedish point-of-sale (POS) market by 5 percent" said Jacob de Geer, CEO and co-founder of iZettle, which last month raised €8.2 million ($11.2 million) in venture funding to change the way people handle business transactions."We're now ready to enter new markets worldwide where chip cards are standard."
In contrast to traditional POS manufacturers iZettle has no starting costs and no fixed fees. iZettle takes 2.75 percent of a sale, plus a €0.16 ($0.25) transaction fee, and then electronically deposits payments in the seller's bank account the business day following a transaction.
"iZettle has opened a new and massively untapped market for card payments," said Mats Taraldsson, Head of Market Development for MasterCard Nordic & Baltic region. "We like to call it the 20 million merchant opportunity," he added, referring to recent research indicating approximately 20 million European companies only accept cash, checks or invoices.
"Since its launch in Sweden in August iZettle has proven to be a big success, and has clearly shown that small businesses and individuals appreciate the convenience and security of taking card payments anytime, anywhere. We are proud that iZettle continues to build on MasterCard's expertise - and as they now initiate their commercial launch across Europe we think it's great news that millions of merchants for the first time will be able to take card payments" says Taraldsson.
The completion of iZettle's test coincides with the release of a new version of its iPad application for businesses that need to process multi-product sales in a single transaction. Soon available in Apple's App Store, iZettle's new iPad app make it possible to create custom menus of products much like on expensive touch-screen POS systems in retail establishments around the world.
Making it easy to start taking credit card payments has been a blessing for small businesses across Sweden. Henrik Ingemansson, a Silversmith, comments: "Finally there's a payment service that's both simple to use and easy to take with me. I do work in both Stockholm and Öland, and iZettle makes it possible for me to accept payments and do my job wherever I am."
The demand for iZettle's card readers has exceeded all expectations but the company now guarantees that all registered users will have their card reader before Christmas.
"We're very satisfied with results so far and look forward to adding new card networks to the iZettle offering and expanding throughout major European markets early next year." said Jacob de Geer.
iZettle is EMV (Europay, MasterCard and VISA) approved, and compliant with the Payment Card Industry Data Security Standard (PCI-DSS). No sensitive data is ever stored on the mobile device or iZettle reader, and all data traffic is encrypted.