Payments processor Elavon will handle mobile payment transactions generated through iZettle mobile card readers in Europe.

Sweden-based iZettle says it chose Elavon, a unit of U.S. Bancorp, to operate as its processor/acquirer to take advantage of Elavon's experience in Europe.

IZettle provides a card reader and software that allow small merchants to accept card payments with their smartphones.

Elavon's longstanding relationships in key markets fit the iZettle model of having an acquirer link to the distributing bank, iZettle states in a Nov. 4 press release. Elavon is the first acquirer that has completed the accreditation of iZettle's chip-and-PIN card reader.

"It is refreshing to find a company in this sector that is willing to completely adapt its processes to fit any business model," Magnus Nilsson, founder and chief operating officer of iZettle, states in the release.

Elavon illustrates great flexibility for dealing with different markets, providing service that can be tailored depending on individual needs, Nilsson adds.

In April, Elavon announced its merchant services partnership with Banco Santander, which has invested heavily in the company. IZettle made its first move beyond European borders in June when bringing its mobile card reader to small businesses in Mexico.

IZettle hopes to benefit from Elavon's strong business relationship with Santander worldwide, including in Mexico.

"The small business community is exciting because it will bring new customers to card payments," Hannah Fitzsimons, head of business development for Elavon, states in the release. "We believe mobile commerce will account for a significant portion of all future retail spend and we are looking forward to working with iZettle to provide a secure payment solution. "

Elavon also hired Realex Payments two months ago to expand its digital payment services for clients using the Elavon Payment Gateway in Europe. 

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