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.