iZettle – the Swedish mobile payment provider – has announced a €60M Series D fundraise. The funding will help the company’s latest product – iZettle Advance.
The company has to date made its money by offering card readers that attach to smartphones and tablets. The product allows small business owners to take payment on the move – and can offer receipt by print or email. The company’s new product – iZettle Advance – will allow approved customers to access credit from IZettle.
The company states that their new merchant cash advance product will pre-assess customers, thus streamlining the process for the customer. Repayment is flexible and is made by iZettle automatically taking a proportion of card sales. In this way, the company promises flexible repayments that fluctuate with revenue and will not charge late payments fees.
The new product is being gradually rolled out across iZettle’s European markets. The €60 million investment will enhance the development and expansion of the service. Carl-Richard Haggman – iZettle’s Chief Risk Officer – commented:
“We have aimed to build a financing service that’s completely tailored to the needs of small businesses. The service allows for small businesses to make the necessary investments in their operations, on their own terms and with minimal administration”
Jacob de Geer – CEO and co-founder – highlighted the gap filled by iZettle:
“Small companies have persistently been underserved by the traditional finance industry. We want small companies to thrive, and with iZettle Advance we’re applying the exact same logic as when we started iZettle five years ago, and completely overhauled card payments acceptance for small businesses“
AltFi recently caught up Ledify co-founder Nicholas Sundén-Cullberg to discuss the projected growth of the P2P market in the region. The news from iZettle marks further development within the region’s broader alternative finance market.