PayPal buys Swedish startup iZettle for $2.2bn

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This combination brings together iZettle's in-store expertise, recognized brand and digital marketing strength with PayPal's global scale, mobile and online payments leadership, and trusted brand reputation. The news came just after iZettle announced last week that it would list an IPO on the Nasdaq in Stockholm later this year.

At the time the firm said the listing would help it raise money and expand.

iZettle technology operates similarly to that of Square, Inc., the California-based financial services and mobile payment company founded by Twitter CEO Jack Dorsey.

"Small businesses are the engine of the global economy and we are continuing to expand our platform to help them compete and win online, in-store and via mobile", said PayPal President and CEO Dan Schulman.

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It has more recently expanded with an e-commerce platform which tracks items such as sales and inventory for its customers. The stock has been pressured by former parent eBay, which is phasing out its relationship with PayPal. It claimed more than 200 million active customer accounts at the end of past year. The company went public at 21.50 in January, reached 38 on March 23 and has since dropped out of the IBD 50.

Paypal's last big acquisition was in 2015 when it acquired money-transfer startup Xoom for almost $890 million.

It is facing increased competition as more companies, including Apple and major banks, improve their digital offerings.

By joining forces with PayPal, which operates in 200 countries, iZettle will be able to accelerate its worldwide expansion, including in the United States.