iZettle, Europe’s prominent provider of mobile payment services, has raised $67 million. The funding was led by Intel Capital and Zouk Capital and Santander InnoVentures, all existing investors. Till now the company has raised $168 million. With the new fund the company is planning to add one new vertical of service-providing small business loans . The new service is called iZettle Advance and will be provided to select iZettle customers who need funds to grow their own businesses.
iZettle says that no payback deadlines are there, and the automated repayments vary with respect to the merchant’s sales. The company says the advance comes with a fixed fee attached to it, rather than a percentage interest rate.
“We have aimed to build a financing service that’s completely tailored to the needs of small businesses,” explains Carl-Richard Häggman, iZettle’s chief risk officer in the venturebeat. “The service allows for small businesses to make the necessary investments in their operations, on their own terms and with minimal administration.”
Established in 2010 by serial entrepreneurs Jacob de Geer and Magnus Nilsson, iZettle has operations in the European nations of Sweden, Norway, Denmark, Finland, UK, Spain, as well as Latin American markets like Brazil and Mexico. It targets small and medium sized businesses and tradesmen like plumbers and electricians, who do not have the turn-over to support the infrastructure required for a traditional card based system. It provides them the flexibility to receive card payments through the iZettle card reader and free app for iOS and Android.
iZettle Advance will provide retailers a cash advance on future card sales. The lending service will allow companies to borrow against projected income. The borrower can then pay the money back in installments each day in proportion to card sales.
Most of the big players in this mPOS segment are foraying into lending. Such as Square Capital, Paypal Capital and others. iZettle seems to look like is trying to follow the footstep of these players.