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Square sinks after Paypal acquires iZettle to better compete in payments (SQ, PYPL)

square reader payment

  • Square shares are lower after Paypal announced it will acquire iZettle, a European fintech startup. 
  • iZettle will allow Paypal to compete better in the point-of-sale business where Square previously had a large advantage. 
  • Watch Square trade in real-time here. 

Square shares are down more than 4% in Friday after Paypal announced it will acquire European fintech company iZettle for $2.2 billion.

The acquisition of iZettle, which produces mini credit card readers for smartphones and tablets, would help Paypal compete better in the point-of-sale business where Square has historically had an advantage. Adding iZettle to the arsenal also allows Paypal to give itself more of an international presence while offering its merchants a more streamlined payments solution that allows transactions in-store and online. 

Square is up 46% this year. 

SQ

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