Mobile payments startup iZettle expands to Spain

IZettle mobile payments are now available in 7 E.U. countries

Swedish mobile payments startup iZettle has expanded its territory to Spain, and is now available in seven European markets.

IZettle offers small merchants such as gardeners and housekeepers a way to accept card payments with their smartphones. The company already offers its services in the U.K., Germany and Sweden and re-introduced Visa payments in Norway, Finland and Denmark last month after settling a payments issue with Visa.

It is expanding to Spain to target small business owners that "are hurting," the company said in a news release Thursday. IZettle charges 2.75 percent of each transaction and has no subscription or set up fee, no monthly minimum fee and is available for iOS or Android. Payments can be made with all major credit cards, including Visa, MasterCard, American Express.

The Swedish mobile payments startup competes with several other companies that offer similar services to Europe's small merchants. The German startup Payleven, for instance, is active in Germany, the U.K., Spain, the Netherlands, Poland and Italy. And Elavon, another European mobile payments company, has been active in the U.K. and expanded to Ireland in October.

The most recent addition to Europe's mobile payments market is Adyen, a Dutch company that also offers card payments on Android and iOS mobile platforms. In contrast to iZettle, Elavon and Payleven, Adyen wants to enable major European retailers to start accepting card payments via a mobile phone on the sales floor, helping them to reduce checkout lines.

Because Adyen is a member of Visa and MasterCard, it can make the service available for all European countries at once, which the other companies haven't been able to do. While Adyen said it won't compete directly with the others, it is actively looking for partnerships to license its product to companies that do want to target small merchants.

Loek is Amsterdam Correspondent and covers online privacy, intellectual property, open-source and online payment issues for the IDG News Service. Follow him on Twitter at @loekessers or email tips and comments to loek_essers@idg.com

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