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U.K. Competition and Markets Authority Gives Provisional “Go Ahead” to PayPal’s 2.2bn Acquisition of iZettle

PayPal’s deal to take over iZettle is nearing a close. The payment giant is set to finalize the deal now that the U.K.’s competition regulator changed its stand on the $2.2 billion deal.

This change of mind came after the U.K. Competition and Markets Authority (CMA) discovered that the combined company would still have to face significant competition from industry bigwigs like Square and Worldpay.

The takeover deal was cut short in 2018 following the CMA’s decision that the merger could create a company that will excessively dominate the mobile point of the sale hardware market. The gadgets allow merchants to take payments through a smartphone; a practice that is getting popular by the day.

CMA: PayPal-iZettle Combined Will Still Face Tough Competition From Veteran Industry Players

The CMA dropped its opposition on April 30, giving the PayPal _iZettle deal provisional approval. The reversed judgment came after scrutiny revealed that Barclaycard and Worldpay would still stand up to PayPal and iZettle combed. The watchdog also found that the merger will also face competition from the likes of Square and SumUp, which are both major players in the mobile payment industry.

“We are glad the Competition and Markets Authority has temporarily cleared our deal. PayPal now looks forward to integrating iZettle’s services and products to its platform in a bid to assist SMBs to get hands on more affordable tools to streamline their operations and get an edge to compete against industry giants,” said PayPal Chief Executive Dan Schulman.

The transaction between PayPal and iZettle will power the Swedish payments provider to maximize its expansion efforts in international markets, the U.S. included, while PayPal will now get an edge to invade the global retail payment gadgets business to compete its near counterpart Square. It should be remembered the latter is already dominating the terminals market.

Gossips of Other Big Companies Looking to Acquire Smaller players

Word is also going around that the PayPal acquisition could trigger takeovers by a couple of other leading payment companies who are targeting smaller players. Some of the firms that could be swallowed include Bindo Labs, ShopKeep, and Adyen. We also shouldn’t forget the year kicked off with a whopping $22 billion transaction where Fiser bought First Data.

Wrapping Up

The close of the deal will allow PayPal to not only offer payments services but also sell mobile POS terminals to small business. iZettle will also get a chance to enter the global payments platform.

Author Bio: Payment industry expert Taylor Cole is a passionate merchant account expert who understands the complicated world of accepting credit and debit cards at your business. His understanding of PayPal micropayments UK has helped thousands of business owners save money and time.