Square sinks after Paypal acquires iZettle to better compete in payments (SQ, PYPL)

Square shares are down more than 4% in Friday after Paypal announced it will acquire European fintech company iZettle for $2.2 billion.

The acquisition of iZettle, which produces mini credit card readers for smartphones and tablets, would help Paypal compete better in the point-of-sale business where Square has historically had an advantage. Adding iZettle to the arsenal also allows Paypal to give itself more of an international presence while offering its merchants a more streamlined payments solution that allows transactions in-store and online.

Square is up 46% this year.