London,
06
November
2012
|
00:00
Europe/London

iZettle launched with EE in Britain and helps tradespeople secure upto £283m in lost customer payments

 

STOCKHOLM & LONDON – From tomorrow, iZettle mini chip-card readers, that turn smartphones and tablets into mobile payments terminals, can be purchased exclusively in 297 newly designed EE stores across the country and from EE's telesales channel. The social payment company’s new device and free app could help small businesses secure millions of pounds they are owed by customers. For example, the UK's plumbers, electricians and builders alone are currently owed up to £283 million by late or non-paying customers, according to an EE survey of 1,029 tradespeople1. 

iZettle's mobile payments card readers, which can be used with iPhones, iPads, and more than a dozen 2.1 and higher Android smartphones and tablets including the Samsung Galaxy range, cost £20 in EE stores and come with a £20 voucher that can be used towards iZettle transaction fees. With iZettle merchants can accept Visa, MasterCard, American Express and Diners Club payments. There are no lengthy sign up processes, no set up fees, no monthly fees and no minimum spend. iZettle merchants are simply charged 2.75% of each payment. 

"The beauty of iZettle is that it's simple to use, totally secure and takes seconds for a transaction," said Jacob de Geer, CEO and co-founder of iZettle, which is used by more than 75,000 small businesses and individuals in six countries. "Whether you are a cabbie, florist, tradesperson or a courier, iZettle gives you the flexibility to operate in both cash and cards. The possibilities are endless because hundreds of thousands of small business can now take plastic. We are very excited about our full commercial launch in the UK and the positive results of our Beta test with 4,000 users over the past six months."

Research revealed today by EE, which has just launched its new superfast 4G and fibre brand in the UK, shows that small electrician, plumbing and building firms alone are currently owed up to £5,000 each by late or non-paying customers – equivalent to £283m. To compound the late and non-payment issue, tradespeople are investing an average of 36 days every year chasing overdue customer bills. Even based on minimum wage rates, that means the time spent chasing customers for payment costs tradespeople up to £125 million a year2. 

Accepting card payments could easily boost revenue and cash flow, but 45% of small firms have been previously put off due to the cost of accepting cards. However, 71% claim they would accept credit or debit cards if there was a low cost, low hassle way of doing so. iZettle meets this need with an effortless sign-up and stress-free system that has one of the lowest cost and complexity profiles on the market. While according to consumers, there is also a pent-up demand with eight in ten (82%) saying they would like the option to pay tradespeople by card.

Gerry McQuade, Chief Marketing Officer at EE said: "iZettle is a revolution for small businesses and consumers across the nation. The aim of our new superfast EE brand is to make businesses' digital lives easier and ultimately more profitable through technology. Businesses and consumers are on the cusp of mobile payment transformation and we are delighted to bring iZettle to market, enhancing our mobile payment portfolio." 

iZettle is designed for small business and tradespeople such as plumbers, electricians, builders, taxi drivers, housekeepers or market stallholders. It is estimated that there may be more than three million people running businesses in the UK who would benefit from the flexibility iZettle offers, with two thirds (66%) of small firms currently owning a smartphone3. 

[ENDS]

Notes to Editors

Press Materials

Photographs, videos and fact sheets are available here for you to use. Jacob de Geer, CEO and co-founder of iZettle; Stewart Roberts, Managing Director UK of iZettle; or Gerry McQuade, Chief Marketing Officer at EE are available for additional comment. Please contact the below to arrange an interview or for further information:

Christina Lundberg, iZettle - christina.lundberg@izettle.com, 07885294841

James Lusher – james.lusher@fishburn-hedges.co.uk, 0207 5443077

Adam Keal – adam.keal@fishburn-hedges.co.uk, 0207 5443739

Tiffini Winn – tiffini.winn@mcsaatchi.com, 07540 180595 (for EE requests)

Louise Caldicott – louise.caldicott@mcsaatchi.com, 07793 082023 (for EE requests)

Footnotes

1. EE conducted an online survey during October and November 2012 of 1,029 tradespeople and 2,090 consumers. The £283 million owed by late or non-paying customers is calculated by:

  • Total number of UK plumbers, electricians and building firms with 1 – 7 employees (ONS, December 2011 = 95,504)
  • Divided by the percentage of the above who have experienced late or non-payments by customers (95,504 / 78%) = 74,493
  • Divided by the percentage of the above who are currently owed up to £5,000 in late or non-payments (74,493 / 76%) = 56,615
  • Multiplied by amount currently owed (56,615 x £5,000) = £283,075,000

2. The £125 million owed by delayed invoice settlement is calculated by:

  • Total number of UK plumbers, electricians and building firms with 1 – 7 employees (ONS, December 2011 = 95,504)
  • Divided by the percentage of the above who have experienced late or non-payments by customers (95,504 / 78%) = 74,493
  • Multiplied by the maximum number of days a year spent chasing late payments (74,493 x 36) = 2,681,748
  • Multiplied by £46.43 daily national minimum wage @ £6.19 an hour over a 7.5 hour day (2,681,748 x £46.43) = £124,513,560

3. Insight, B2B Syndicate, Kantar, July 2012

About iZettle

iZettle, the social payments company, creates services for person-to-person and business-to-consumer commerce. iZettle services are fantastically convenient and secure, simple to set up and use, and make it easy for users to share purchases with friends. iZettle's first service includes a free iPhone, iPad or Android app and a mini chip-card reader that lets anyone make or take payments anytime, anywhere. Founded in 2010 by a team of serial entrepreneurs, iZettle is based in Stockholm. 

iZettle chip-card readers can be used with most iPads, and iPhones, certain iPods and more than a dozen Android devices, including Samsung Galaxy S3 LTE, S3, S2, and Note. Please see iZettle.com for specific information.

iZettle is EMV (Europay, MasterCard and Visa) approved, and compliant with the Payment Card Industry Data Security Standard (PCI-DSS). No sensitive data is ever stored on the mobile device or iZettle reader, and all data traffic is encrypted.

In addition to EE stores, the reader is also available through EE’s customer services on 0800 956 6100 or 150 from an EE phone. iZettle's website also sells the device for £20 (including VAT), and comes with a £20 voucher toward iZettle transaction fees.

iZettle's free app is available on Apple’s App Store or Google Play.

Using iZettle couldn't be easier…

Enter an amount. You can add a picture and a description if you'd like to.

Insert a card in the card reader.

Ask your buyer to sign with their finger straight on the screen to confirm.

Send a receipt via email. Digital receipts mean less fuss.

About EE

EE is the UK's most advanced digital communications company in Britain, providing mobile and fixed line services to 27 million customers, and is the first company in the UK to provide 4G mobile services alongside fixed-line fibre.

EE is the company that runs the Orange, T-Mobile and EE brands in the UK.

Its 4G service will cover a third of the population by the end of 2012 and its fibre service will cover 50% of the population by the end of the year.

EE's mobile service currently provides coverage to 99% of the population with 2G and 98% of the population with 3G.

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