iZettle launches new capital advance product, expanding into new markets
iZettle, a European mobile payments firm, has announced that it is expanding services that will be tantamount to offering small business loans. The service, which is designed to be a capital advance product, is called iZettle Advance. The new service will be available to a small number of customers that require funds to grow their business operations. This will allow the firm to cater to a wider range of customers, enabling organizations to embrace mobile commerce and allowing iZettle to compete with traditional banks.
Service will be rolled out over time throughout Europe
The iZettle Advance will be implemented gradually through several European markets. The first countries that will receive the service will be Nordic countries, where mobile commerce is beginning to gain momentum. Overall Europe has proven to be an attractive market for the mobile payments industry, as many consumers are beginning to rely on their mobile devices to shop online for products that they are interested in.
Some businesses will have access to better loans than others
The capital advance feature of the product may prove useful for many businesses that are interested in gaining the attention of mobile consumers. The firm has not released information concerning the proportion of customers that will be granted loans currently. The size of the loan will be based on the business that is acquiring the loan. Larger businesses with high revenue will gain access to comprehensive loans. Businesses seeking loans will be evaluated based on their monthly revenue, while others will be evaluated on their annual revenue.
Mobile payments market is not yet saturated, which gives iZettle promising opportunities to expand its business
The launch of the new service is being funded by iZettle’s latest funding round, during which it acquired some $67 million in investments. Some of this funding will be used to ensure continued growth for iZettle’s other products. The firm believes that the mobile payments market is not yet saturated, which means that there are many opportunities for firms that specialize in mobile payments to find success.