Image copyright iZettle
PayPal has purchased iZettle, a Swedish cellular payments firm that sells a card-reader geared toward small companies, for $2.2bn (£1.6bn).
The transfer boosts PayPal's in-store presence at a time when competitors within the on-line payments sector is rising.
The takeover comes lower than three weeks after iZettle mentioned it will listing shares in Stockholm.
At the time the firm mentioned the itemizing would assist it increase cash and increase.
When full, the acquisition of iZettle will imply PayPal has an in-store presence in 11 markets in Europe and Latin America.
PayPal president Dan Schulman mentioned: "This combination brings together iZettle's in-store expertise, recognised brand and digital marketing strength with PayPal's global scale, mobile and online payments leadership, and trusted brand reputation."
Founded in Stockholm in 2010, iZettle began out promoting credit score and debit card readers that could possibly be plugged into good telephones and tablets.
It has extra not too long ago expanded with an e-commerce platform which tracks gadgets reminiscent of gross sales and stock for its clients.
US-based Paypal was previously a part of eBay, however is now a standalone digital and cellular payments firm. It claimed greater than 200 million lively customer accounts on the finish of final yr.
It owns the peer-to-peer payments firm Venmo, which is in style in the United States, and final yr acquired Swift Ficial, which makes enterprise loans.
The firm mentioned final month that it was contemplating further acquisitions.
It is going through elevated competitors as extra firms, together with Apple and main banks, enhance their digital choices.
The tie-up with iZettle will enhance PayPal's capability with companies with bodily retail operations.