Yesterday iZettle made 2 announcements. €5 million is being invested and they have a new partner in the UK. The investment comes from Banco Santander and the partnership is with Santander UK.
The €5 million from Banco Santander is a strategic investment. In a statement issued by iZettle Jacob de Geer, CEO of iZettle said: “We want to bring iZettle to the world, and to do that we must have strategic partnerships with the world’s leading banks. Our relationship with Banco Santander is central to our transition from local to multinational services.”
Ramón Tellaeche, head of Santander Cards at Banco Santander stated: “Millions of small business owners and professionals in the markets where we operate need an alternative to conventional credit card terminals, and simple software to manage and analyze their transactions. We are strongly committed to innovation that satisfies emerging needs of our customers, we believe iZettle’s innovative mobile technologies will be crucial to those merchants’ near and long term success.”
iZettle chip and PIN readers are currently available in Sweden, Norway, the UK, Finland, Germany and Spain. It is clear the investment is aimed at strengthening iZettle’s profile and increasing sales in these markets.
Santander UK have partnered with iZettle to offer business customers iZettle card readers at a reduced rate. Santander Business Banking customers will receive £50 cashback the first time they use their iZettle card reader with their business account.
As part of the initiative iZettle and Santander UK conducted a survey of 2000 adults around payment preferences. Key findings:
- 78 per cent of UK adults carrying less cash than five years ago
- On average people now carry around just £20 to £30 in cash
- 56 per cent of 18 – 34 year olds avoiding small businesses that don’t accept card or charge minimum payment amounts
- 46 per cent of UK adults find it frustrating when a shop has a minimum card spend of £10
- 60 per cent of UK adults state they would be more likely to buy from small businesses if these payment barriers were removed
Steve Pateman, Head of UK Banking at Santander said: “The British economy is built on the success of its millions of small businesses. These business owners know that their success relies on being able to give their customers what they want. Our research shows that consumers want payment barriers removed, and business owners want a flexible and innovative solution to this problem.”
iZettle chip and PIN machines are currently available in the UK for £99 + VAT. There are no setup or monthly charges, the only fee is the transaction fee of 2.75%. This model is being explored by several companies in the UK with machines being available for individuals right through to enterprise level companies.
iZettle’s main competition at present comes from Payleven who also offer a chip and PIN reader and who recently announced their devices are to be sold in Apple stores. PayPal are also soon to release a chip and PIN reader, PayPal Here.