iZettle, a Sweden based company looking to crack the social payment problem, has closed an 8.2M euro investment from Index Ventures, Creandum and Charles Dunstone, CEO and Co-founder of The Carphone Warehouse. The round was lead by Index Ventures. iZettle’s solution is very similar to that of the US leader’s in this space, Square. They have an iOS app that users are able to download for free and then use that app, together with a small chip-card reader, to accept and pay for goods and services with your credit card.
The service works quite neatly to be honest. The first time I saw their introductory video, I thought “Holy fu*k, these are the kind of companies I want to see in Northern Europe” (the video is at the end of this post). The ambition level is high enough, nothing short of world class. With the investment, the company is looking to expand their offering outside of Sweden (personally I’m hoping they’d start off with Finland, eager user right here!).
The service is aimed at individuals and small businesses. There’s no monthly upfront costs and my guess is that you pay a commission based on the payments you receive. The company also provides daily deposits to users bank accounts, making it your best friend when it comes to cash flows. The app is also EMV certified, so it’s good to go in Europe.
One little quirk I noticed with the app/service is that instead of asking buyers to punch in their PIN-codes on the phones, they ask for a signature. This isn’t something iZettle hasn’t looked into, they are fully compliant of the all the regulations, but it’s actually the regulations that currently prohibit the use of PIN codes on mobile phones. Most likely for the reason that keylogging applications can be run in the background to collect users’ PIN codes.
Nevertheless, I’m really excited to see iZettle close such an investment to fuel its expansion into other countries.