Banco Santander has invested €5 million (£4.2 million) in payment company iZettle, which enables small businesses to make mobile transactions using smartphones and tablets.
Swedish firm iZettle is one of a number of companies which have stepped into the field of mobile chip and PIN payments systems, providing point of sales hardware devices and apps to enable mobile payments
According to iZettle, the investment from the Spanish bank will enable the company to continue to grow its social payment business in Europe, where it goes up against the likes of Intuit and PayPal in an increasingly crowded market. Last year the company also announced a €25 million investement through Series B funding.
Santander also announced a partnership to offer the system to business customers in the UK, where iZettle sells its chip and PIN reader for £99 in the UK, with £50 cashback. The company also receives a 2.75 percent transaction fee.
“Our research shows that consumers want payment barriers removed, and business owners want a flexible and innovative solution to this problem," Steve Pateman, Head of UK Banking at Santander said.
“At Santander, we are constantly searching for innovative solutions that add value to our customers every day needs, which is why we are pleased to be announcing our partnership with iZettle, an innovative small business in itself.
As part of the announcement iZettle also released a study which showed that 39 percent of the 2,009 UK customers surveyed would avoid buying through small business because of difficulties in making card payments. The most common places for customers to have problems in using their cards, are in independent retailers (25 percent), pubs (13 percent), market stalls (13 percent), and taxis (13 percent).