Mubasher: PayPal Holdings on Thursday announced that it would buy Swedish financial technology company iZettle AB for $2.2 billion, marking the largest acquisition in the history of the US company.

In the middle of a rising online payment competition, the deal would expand the US digital payment giant’s in-store presence with 11 markets across Europe and Latin America, where it has a small footprint.

The acquisition comes less than three weeks after the Swedish company said it would launch an initial public offering (IPO) on Stockholm Stock Exchange, which would help the California-based company raise money and expand its business.

Meanwhile, the US company projects to roll out iZettle devices and technology in some of its largest markets, including the US.

The takeover would also compensate PayPal’s loss of a large sources of customers, after separating from its former parent company eBay in 2015.

Under the terms of the deal, iZettle’s current CEO Jacob de Geer will operate the business.

"This combination brings together iZettle's in-store expertise, recognised brand and digital marketing strength with PayPal's global scale, mobile and online payments leadership" PayPal’s CEO Dan Schulman said, adding that it would allow providing both existing and potential customers with “a full-service, one-stop-shop solution.”