Founded in 2010, iZettle is a Swedish financial tech company determined to drag the payments industry into the 21st century.
iZettle allows you to use your smartphone or tablet as a mobile point of sale device by pairing a small card reader. This allows you to accept payments anywhere in the world so long as you have a connection.
In this article, I’m going to dig down into what iZettle does and discuss what sorts of businesses will get the most out of the service.
What is iZettle?
iZettle is a point of sale app that you install on a tablet or smartphone. The iZettle app works with an external card terminal (£25 plus VAT) to process credit and debit card payments, allowing you to accept payments wherever you have an internet connection.
The app itself is free and fully functional. It supports all major card networks, boasts powerful reporting software, helps with stock management and even integrates with accounting software like Xero.
iZettle works on a pay-as-you-go basis so once you pay for the card terminal, you only pay transaction processing fees. That means you’ve got no contracts and no fixed to worry about every month.
Is iZettle easy to use?
iZettle is designed to be easy to use by everyone and anyone. Just pair the reader with your mobile device and start accepting payments.
The app is intuitive and has a great mix of custom and templated features. The automatic integration with Xero cuts down on a lot of manual paperwork and the stock management features are hugely helpful for accurate record keeping.
From a customer’s point of view, the iZettle looks like a slightly techier card terminal. It’s sleek and small — a little larger than a credit card. It works with almost all credit and debit cards, including Visa, MasterCard, Visa Electron, V pay, Maestro, American Express, JCB, Diners Club and Union Pay.
iZettle also accepts contactless payments, which is a nice addition for smaller merchants.
How much does iZettle cost?
The iZettle app is free and that includes all functionality like reporting tools, integrations with Xero and so on.
Once you’ve got that downloaded, you’ll need a card terminal so your customers can plug their cards into something. The terminal costs £59 if you buy it directly from iZettle but we’ve got a special deal so can offer it to you for just £25 plus VAT. Get your iZettle terminal.
When you start accepting payments, iZettle takes a small percentage of every transaction and how much it takes depends on how much you process every month. Here are the rates for a few example monthly card turnovers.
|Monthly card turnover||Transaction fee rate|
This sliding scale is one of iZettle’s best selling points. By decreasing its rates as your turnover increases, your processing costs will scale with your business, which keeps your payment systems cost-effective for longer.
If you know how much your business accepts every month, you can check your transaction fee rate here.
Is iZettle safe for my business?
When iZettle first launched, people were naturally hesitant about plugging their credit cards into a small box connected to a smartphone. Is this legitimate? Is this box going to steal my credit card details?
The good news is that security is at the heart of everything iZettle does. iZettle is approval by EMV, the technical standard for smart payment cards, and they adhere to strict guidelines set out by the Payment Card Industry Data Security Standard (PCI DSS).
Despite being a relatively young company, iZettle boasts the same standard of security as any other leading terminal available on the market.
It’s simply not possible to get into security specifics in such a short blog so if you’re interested, I’d recommend you read through iZettle’s own security literature.
Should I use iZettle for my business?
iZettle is a great choice for small businesses, microbusinesses, entrepreneurs and market traders. If you need a super simple POS with the flexibility of taking payments on the move, iZettle is definitely an option to consider.
It’s also a great choice for low volume businesses. If you process less than £10,000 per year, iZettle is reasonably competitive on price.
However, it’s not for everyone and every business.
If you operate from one location and you process more than £10,000 on cards every year, there are cheaper options available. Also, remember that you can’t take offline payments using iZettle so if your connection drops, you’ll be stuck asking customers for alternative payment.
For more information about iZettle, check out our special offer.