Mobile Payments Firm iZettle Lands $63 Million Funding Round

Big news recently hit the iZettle mobile payment system, one of Sweden’s big names in mobile payment processors, as a coalition of recent investors came back for more, putting around $63 million into the company’s coffers.

The new investment round featured return investors Intel Capital and Zouk Capital offering equity funding, while Victory Park Capital threw in on debt funding.

Representing a proposition somewhat similar in nature to Square, where it offers card readers and software to help smaller businesses take card payments, iZettle has focused its efforts on Europe, primarily, making some inroads into Mexico and Brazil.

Previously, iZettle raised around $148 million, which gave it room to operate as it was. The newest round, meanwhile, is set to give the company its “…next stages of growth.”

Victory Park Capital partner Gordon Watson noted “We have been following the impressive growth of iZettle since its inception. iZettle is an innovator and a clear market leader in Europe, and we want to be part of its next chapter of growth.”

What iZettle has done clearly well is offer a product similar in nature to Square, and in pretty much every place that Square was not making its offer. This has allowed a successful product that’s fairly similar in nature to work well in two separate markets, and allowed iZettle to grow into something of a powerhouse.

The only downside here is that its growth options from here are likely a bit limited. It may want to consider a push into Africa, or even a further push into the South American and Latin American markets, but it can’t really go into Square’s turf because Square has that turf quite settled.

The good news for iZettle, however, is that there’s plenty of unexplored turf on hand that neither it nor Square has as yet seized. That means plenty of room to work with, and plenty of new markets that are getting interested in mobile payments. The infrastructure may leave a little to be desired, but the good news here is that there will be new opportunities ahead for iZettle…assuming Square doesn’t pursue them first.