Extending reach in offline payments space
In recent months, PayPal (PYPL) has made moves aimed at growing its foothold in Europe. In September, the company completed the acquisition of iZettle, a Swedish payments company with operations across Europe and beyond. One of iZettle’s businesses is selling payment-card readers that allow even small traders to accept credit card payments. The acquisition of iZettle has been viewed as part of PayPal’s efforts to extend its offline payments reach and close the gap with Square (SQ), which also makes payment-card readers. PayPal spent about $2.2 billion on the iZettle acquisition, but the deal has raised concerns in the UK, as the country’s antitrust regulator recently said that it would launch an in-depth review of the deal’s potential impact on competition.
Lending to small businesses in Germany
In another European expansion move, PayPal last month introduced its business lending service in Germany, marking the first major expansion of the business after PayPal sold a portion of its lending operations to Synchrony Financial (SYF). According to PayPal, its lending arm has extended more than $6.0 billion in loans to over 170,000 small businesses in the past five years.