iZettle, a mobile payment provider, today announced it has received €8.2 million ($11.2 million) in Series A funding led by Index Ventures with co-investor Creandum and further investment from Charles Dunstone, Co-founder and CEO of The Carphone Warehouse.
In August this year, iZettle released a free app and mini chip-card reader for iOS devices in Sweden. iZettle’s solution enables anyone to accept card payments using their iPhone, iPad or iPod Touch. The card reader, which is attached to the bottom of the device, allows users to take payments from chip-enabled credit or debit cards. The service is EMV (Europay, MasterCard and VISA) approved, and compliant with the Payment Card Industry Data Security Standard (PCI-DSS). No sensitive data is stored on the mobile device or the card reader, and all data traffic is encrypted.
iZettle is often referred to as the European counterpart of US mobile payment service Square. The services and rates are similar, but iZettle also supports chip-enabled cards, which are popular in Europe. The Series A funds will be used to expand into chip-card markets outside of Sweden as well as support the development of the iZettle sevice. Ben Holmes, Index Partner who joins iZettle board of directors says: ”iZettle is a company with the right technology at the right time. Its simple and cost-effective system is opening up a whole new frontier for the payments industry.”