How we support small businesses

Small businesses around the world account for the majority of businesses – and yet, many of them still do not have access to tools and systems that facilitate and boost business. These small businesses are not seen as profitable investments; banks and financial institutions treat them unfairly, meaning that they miss out on the opportunities afforded to larger companies.

We want to play a role in changing this. We started off by launching the world’s first chip card reader and app for mobile card payments, making it possible for small businesses to accept card payments quickly and easily. Today, we help hundreds of thousands of small business owners around the globe with a range of services like cash registers, card payments, sales reports, CRM tools, invoicing, point of sale system and financing.

All our products and services are based on the data we have about the needs, challenges, opportunities and situations of small companies. Our financing service, iZettle Advance, is a good example of this. Traditionally, it has been a challenge for small business owners to get the funding they need in order to grow. We have access to the sales history of small business owners – and based on this information, we can predict future sales. Armed with this knowledge, we can offer small businesses an advance on future payments. Repayment is tied to sales and occurs automatically. When business is booming, users pay back more; when business is slower, they repay less.

In markets like Mexico, our mission is still about financial inclusion to a large extent. This plays a crucial part in eradicating poverty. There are still two billion people in the world with no access to basic financial services like bank accounts and debit cards: services that make daily life and running a business easier. Lack of access to financial services can, for example, result in extra costs for handling checks and overpriced loans via loan sharks. This also reduces the possibility of handling online purchases and sales, and makes administration and invoicing more time-consuming.

Mexico

In Mexico, we collaborate with the card payment network in order to drive financial inclusion. Together with Mastercard, we have launched our own card service aimed at small business owners without bank accounts.

Mexico has 127 million inhabitants, 70 million of which have no bank accounts (1). By becoming an iZettle customer, you get access to an online bank account without having to go to a physical bank. We can then make payments to the account and the customer can use the card at ATMs and in stores. This is a way for Mexico’s many small business owners to join a banking system.

55%

of Mexicans don’t
have a bank account.

There are more than 180 million charge cards in Mexico, but only nine retailers per thousand inhabitants accept card payments. Before we launched our business in Mexico, the figures were even lower: six retailers per thousand residents accepted cards. Thanks to our services, more business owners can accept card payments, making it easier for consumers and increasing sales for businesses.

We play an important role in the country. By strengthening small businesses and getting more people and businesses to take advantage of the benefits of digital financial services, we see how we can help fight poverty while contributing to a reduction in the illegal economy.

Brazil

Unemployment in Brazil is high. More than 13 million people of working age – that is just over 12% – were out of work at the end of 2017 (2). For many of these people, running a business is the only way to get an income. At the same time, millions are still excluded from the financial system, which makes life difficult for the country’s small businesses.

Due to their size, banks are not interested in these businesses; they are not perceived as profitable investments and they do not have access to financial tools better suited to their needs and problems. In addition, the Brazilian bank system is one that demands a deposit from businesses, charges high fees and keeps back card payments up to a month. This makes it difficult for small businesses with lean daily takings and limited resources. However, these companies can start taking card payments with iZettle’s solutions. They can increase sales, grow, and have the chance to get themselves and their families out of poverty.

12%

of the able-bodied citizens of Brazil
was unemployed by the end of 2017