iZettle, the Swedish payment app and credit card chip reader, announces today it has dropped their €0.15 fee per transaction. Now to receive payments, users must only pay a 2.75% charge for MasterCard, Visa, or Diners Club card payments, or 3.75% for American Express.
This dropping of a transaction fee brings iZettle nearly on par with Square, the similar American service for credit cards without the security chip, which only charges 2.75% per transaction for all major credit cards. The two companies operate in different markets (iZettle supports the higher credit card security features used in Europe), but the dropping of the transaction charge signifies iZettle has matured to a similar level. iZettle has more than 50 000 users in Sweden, Denmark, Norway, and Finland.
The reason iZettle cited for dropping the transaction fee is that the company believes that card payments should be accessible and affordable to anyone, no matter what the size of the transaction is. Compared to traditional point of sale card readers, with iZettle there is no set up fee, monthly fee or minimum.
iZettle tells us that the average transaction size for small businesses is around €50, but of course the previous €0.15 fee could really cut into the margins of a small coffee shop or hot dog stand.
“This is another step towards making card payments accessible and affordable for everyone, no matter the size of your business or your average transaction,” says Jacob de Geer, co-founder and CEO of iZettle.