Santander in Spain has invested €5m (£4.25m) in mobile payments firm iZettle, having announced a partnership with the mobile payments firm back in February.

Under the initial deal, Spanish customers of Santander were offered a discount for the reader paid directly into their bank accounts. Santanders UK small business customers will now be able to get £50 cashback after their first iZettle transaction if the reader is linked to their Santander business account.

The chip and PIN reader costs £99 plus VAT and works with a free iOS or Android app. Transactions are charged at 2.75 per cent.

Consumers avoid local businesses

Santander UK and iZettle have also released research on attitudes to mobile payments, revealing that 39 per cent of UK shoppers avoid businesses that don’t accept card payments require a minimum payment amount. This number reaches 56 per cent among 18 to 34 year olds. 

Independent retailers, pubs and bars, market stalls, taxis, along with food and drink stands at events were all identified as potential losers, with 66 per cent of those who abandon purchases going to big supermarkets. 

The survey of over 2,000 UK adults found that 23 per cent admit to avoiding local businesses altogether because they dont take card payments or have a minimum spend. But 60 per cent said they would visit smaller stores more if payment barriers were removed.