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Business

Battle for mobile payment market in Europe

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Business

Battle for mobile payment market in Europe

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COMING UP:Battle for mobile payment market in Europe

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Transcript

00:00:00
>> Payments giant PayPal, in a push to get its devices into the hands of European business owners. Even lesser known Square, the firm run by Twitter chief Jack Dorsey, is keen to muscle in, too. But both US groups face a fierce fight with local rivals who have a head start.
00:00:17
Reuters correspondent in Stockholm, Mia says iZettle and Sumup already have a monopoly.>> They're serving the small and medium companies. So coffee shops, food stands, the floral shop down the street, and they're helping these small and medium companies basically do their transactions. So they have these tiny devices that you can plug into your telephone or a tablet, smartphone, etc and it basically turns those into sort of, cash registers.
00:00:46
And so, they're tapping that market and really dominating it.>> Now that market's set to get increasingly crowded. PayPal, hoping to take its PayPal Here system beyond the US, Britain, and Australia. And San Francisco based square, is also testing its systems in London despite the Brexit vote and advertising jobs in Europe.
00:01:06
>> If you think about it, you know you've really got some of the world's strongest economies in Europe. Beyond that, you have more and more people paying with credit cards, with their smartphones. So these companies that are coming in, they're trying to capture those transactions. Everyone is out to try to have the best transaction feed.
00:01:26
There's a lot of competition, which obviously weighs on the margin and your bottom line.>> iZettle, backed by MasterCard and American Express, saw revenues jump more than 80% to $41 million last year. While SumUp, backed by e-commerce giant Groupon, is already present in 14 European countries and is busy slashing fees.
00:01:48
Even so, neither made a profit last year. As the EU prepares new regulations to open up the payments market by 2018, the race for scale will be key to success or failure.