Square sinks after Paypal acquires iZettle to better compete in payments

  • 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 $US2.2 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.

SQMarkets Insider

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.