iZettle raises €25 million, wants to become the biggest European mobile payments system →
Unlike other dongle-based mobile payment services like Square and PayPal’s Here which use a card’s swipe strip for processing, iZettle has focused on transactions (each charged a flat 2.75% commission on MasterCard, Visa and Diners Club; 3.75 for AmEx) using chips embedded in the cards: chips are now ubiquitous in Europe and are considered more tamper-proof than the strips. De Geer believes that will help the company bring on both more merchants and consumers to the service as it looks to take its offering mass market. “Security comes built into that,” he says.
I wonder how Square will enter the European market. I hope they won’t stick with the swiping technology since it would harm the trust people have in the service. Europeans don’t swipe, they use the chip in the credit card, because it is believed to be more secure. I can see people refusing to use it based on this ground.
As to iZettle’s name, if they want to become the “name synonymous with mobile payments in Europe”, which they do, I’d suggest to change the name. Zettle certainly means something related to payment in Sweden. I’m not even sure since the different Swedish dictionaries I’ve tried don’t return anything. It can definitely be understood in Germany as being an iDocket, but I can guarantee that it won’t mean anything to French people and I assume to English people to, let alone the rest of Europe. An English word would propably be more convenient.