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What will the merger of PayPal and iZettle result to?

Dan by Dan
06/05/2019
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Watchdog gives green light for the merger

The UK’s antitrust Watchdog has cleared PayPal’s 2.2-billion-dollar takeover on the Swedish start-up iZettle, stating that the competition in the payments sector has got intense in the past few years. The Competition & Market experts and Authorities where quite a bit tensed on this take over as this overlap has enabled businesses to take offline payments using a card reader which gets connected to a tablet or a smartphone. It was also claimed important to verify in detail on the possibility of the happening if iZettle hadn’t been taken over, then the PayPal would have had pre-existing plans to invest in its product offering.

Watchdog Intervention-

According to Watchdog, it was important it was important to provisionally clear the deal when followed in the depth probe. The company states that this merge can rather prove beneficial to both the companies as there is a lot of competition amongst the payment services companies in the market. With Large payment services companies like Square and SumUp, Worldpay and Barclaycard which together account the two-third of the market, it is beneficial for the companies to take this deal positively for a successful future in the market. The company states that the final decision on the merger will be taken in the month of June but still the merge has a higher chance to happen.

Tie-up Benefits for PayPal-

This move of PayPal may be quite a relief as it had already initiated and completed the takeover the last September. This Tie-up has been proved to be quite beneficial to PayPal as well, as it is considered to be the largest ever deal, making it one of the most successful fintech start-ups in Europe till date. The Executives of the PayPal company have stated that they are ready to add iZettle’s products and services to the platform of the company. This is a major advantage for both the companies as the merge as not proved anything wrong and had got the company into tuff competition with the other companies. This decision and further implementation can prove beneficial to the companies and the customers as the best service is provided from this merge. The merge has also got the other companies in the market bite their nails and also has got the other companies make changes in their service and prices to stay strong in the competition.

Conclusion-

The merge of PayPal and iZettle will not only prove beneficial to the companies, but also it will bring about a new phase into the market, where the customers will be benefitted in the result, as the competition will make sure the customers get the best quality goods and services in the cheapest way possible. PayPal and iZettle can now get better together and grow together leading to the best fintech company in Europe, helping it to increase its standards and goodwill in the market. Even the experts in the market have stated that this decision can prove advantageous to both the companies.

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