Europe’s arguably better-run answer to Square, iZettle, has decided to broaden the purview of its business beyond the mPOS systems that put it on the map.
The Sweden-based firm has decided to move into SMB financing and will be offering its small business customers an opportunity to secure an iZettle-funded advance based on future card sales.
The new program rolls out following iZettle’s announced $67 million funding round in August, which, at the time, was noted to be earmarked for expanding the firm past the world of card payments.
The program will be known as iZettle Advance and will offer European small businesses a non-bank alternative for managing cash flow issues. Because iZettle is offering the service to users of its credit card reading technology, it is easy for the firm to pre-assess their creditworthiness, provide funds and set up automatic repayment.
“Small companies have persistently been underserved by the traditional finance industry. We want small companies to thrive, and with iZettle Advance, we’re applying the exact same logic as when we started iZettle five years ago and completely overhauled card payments acceptance for small businesses,” noted Jacob de Geer, iZettle cofounder and CEO.
Which is not to say iZettle is done with its card reader business. The loaning is an add-on rather than a replacement. Currently, the firm’s Card Reader Pro Contactless is rolling out in Denmark, The Netherlands, Spain, Finland, Norway and France. The card tech has already premiered in the U.K. and Germany.