The capital was acquired in two funding rounds (Series A and B) and will help the Stockholm-based company to break the Nordic frontiers acrossEurope and other markets where chip-cards are the standard.
iZettle’s funders list includes Greylock Partners, Northzone, MasterCard, SEB Private Equity, Index Ventures and Creandum.
The company uses a mini chip-card reader and app to convert an iPhone or iPad into a credit card terminal and has initiated tests for commercial release in the UK.
“iZettle is the first and only company to develop an affordable chip-card reader and app for smartphone-based mobile commerce that meets all of the rigorous international security requirements,” said Laurel Bowden, Greylock’s partner in London who is joining iZettle’s board of directors.
Aimed at small business entrepreneurs and self-employed professionals, iZettle says its chip-and-signature product has contributed to increase the volume of POS in Sweden, Finland and Norway by 10% since August 2011.
“There are currently about 20m small businesses in Europe that only take cash or invoices, according to Eurostat. That’s a huge opportunity that only iZettle can address right now,” said Ben Holmes, partner at Index Venture.
iZettle charges no monthly subscription, but collects a 2.75% to 3.75% fee per transaction made in Sweden. iZettle is PCI-DSS compliant and approved by Europay, MasterCard and VISA. It doesn’t store sensitive data on the device and information transfer is encrypted.