RetailTechNews rounds up some of the biggest stories in the European retail technology space. In this week’s edition: Paypal to Acquire iZettle; Dunnhumby Buys Marketing Software Company Aptaris; and ‘Tap & Go’ in UK Stores.
Paypal to Acquire iZettle
The biggest deal ever for payment giant Paypal: the ex-eBay company is investing USD$2.2bn (£1.6bn) in the acquisition of Swedish mobile payment provider iZettle – a move that will see Paypal reinforce their business activities in iZettle markets such as Germany, Brazil, or Mexico, among others.
The announcement comes as a surprise after the recent news of iZettle’s intention to become publicly listed. Now Paypal is snapping up the company before its listing – but after a pre-IPO evaluation of USD$1.1bn (£0.8bn). According to company information, iZettle is forecasting revenues of USD$165m (£124m) in 2018 and processed payment transactions to the tune of USD$6bn (£4.5bn).
iZettle’s leadership is to stay on post-acquisition with CEO Jacob de Geer continuing his leadership role under the Paypal umbrella, but reporting to Paypal COO Bill Ready.
The acquisition of iZettle will help Paypal offer payment options for smaller retailers and private users who can use iZettle’s mobile card-reading technology. iZettle’s solutions also enable in-store payment – an area that online-focused Paypal neglected for a long time.
Dunnhumby Buys Marketing Software Company Aptaris
Tesco-owned Dunnhumby is investing in marketing and promotions software. Following a prior partnership, Dunnhumby is acquiring Aptaris Software in an effort to bring together Dunnhumby’s data science expertise with Aptaris’ solutions.
“This acquisition is a pivotal step for us in our goal to be the world’s leading customer data science company by enabling retailers around the globe to increase revenue and profits by delivering exceptional experiences for their customers”, explains Guillaume Bacuvier, CEO, Dunnhumby. “We look forward to using our synergies and combined assets to take our customer data science platform to the next level of innovation and deliver greater value for our clients.”
Aptaris’ leadership will join Dunnhumby with Aptaris’ CEO Tom O’Reilly serving as a strategic consultant; CTO William Morrell; SVP of product management and Delivery Krista Gettle; and SVP of sales and marketing John O’Reilly all taking on key executive positions at Dunnhumby.
Dunnhumby’s enterprise platform is aimed at retailers and suppliers, combining dunnhumby’s data-science-driven consumer insights and forecasting with Aptaris’ workflow and vendor management.
‘Tap & Go’ in UK Stores
A new mobile solution for retailers is bringing a ‘tap and go’ application on consumer smartphones in the UK. Retail software firm Jisp is aiming their ‘Tap & Go’ shopping solution at retailers selling groceries, pharmaceuticals, and gifts, promising faster scan times than conventional supermarket checkouts.
Instead of scanning bar codes at the checkout, the Jisp solution registers prices via tapping the mobile phone at a sticker on the shelf as consumers choose products. Enabled by near-field communication, price and product details are communicated to the shopper’s phone. The complete shopping basket can then be purchased via Tap & Go, which automatically deducts the payment from their connected card.
Jisp says that overheads for the mobile solution are lower for retailers as they need not invest in POS hardware themselves. A digital solution such as this allows cross-selling in-store, or afterwards, via discount offers etc. on the mobile device, based on customised and targeted consumer insights.
Julian Fisher, Jisp founder and CEO, says: “Tap & Go will make scan services seem slow, cumbersome, and old fashioned. Since most customers will have their mobile phone with them, this way of shopping will seem natural, reflecting how they shop, their lifestyle and choices and, crucially, to keep a digital record of their purchases.”