As per the deal, the position of iZettle's co-founder and CEO Jacob de Geer will remain intact. iZettle's entire executive team will also continue the operation as before.
It owns the peer-to-peer payments company Venmo, which is popular in the United States, and past year acquired Swift Financial, which makes business loans.
iZettle was founded in Stockholm in 2010, and started its business selling credit card and debit card readers you could plug into a smartphone or a tablet.
"Small businesses are the engine of the global economy and they are increasingly demanding a partner that can provide a one-stop solution to help them compete and win online, in store and via mobile".
Up to now, although it has a limited presence in the area of point-of-sale, it doesn't have the same infrastructure of its potential rivals, whereas iZettle is becoming increasingly popular for pop-ups, markets and small businesses where a landline connected merchant is less appealing.
German coach in a fix over World Cup squad announcement
Borussia Dortmund forward Marco Reus is included after missing both the 2014 World Cup and Euro 2016 through injury. The FIFA World Cup titleholders will have to submit their final 23-man squad including three goalkeepers on June 4.
PayPal, the American company that operates worldwide in the online payment space, is acquiring iZettle, a Stockholm-based company that offers a range of payment and commerce solutions.
Schulman described the merging of iZettle and PayPal as a "strategic fit" combining shared values and culture with complementary product offerings and geographies. The company is on track for $165 million in revenue this year, up 60 percent from a year ago, while losses appear to be narrowing.
The $2.2 billion PayPal is putting up for iZettle is the San Jose, California-based company's biggest ever deal, according to data compiled by Bloomberg.
Upon closing of the deal, PayPal will gain in-store capabilities in Brazil, Denmark, Finland, France, Germany, Italy, Mexico, Netherlands, Norway, Spain and Sweden.
In parallel with preparing for the IPO, iZettle has been involved in talks with PayPal, who reached out and showed serious interest in the company late in the process. J.P. Morgan Securities plc is acting as sole financial adviser to iZettle, while Gernandt & Danielsson is acting as its legal adviser.