PayPal completed an acquisition of European point-of-sale terminal provider iZettle for $2.2 billion, although the deal still faces a review by the UK’s Competition and Markets Authority (CMA).

In a statement, PayPal said the transaction, first announced in May, was now closed and will help the payments giant expand its offering for small business customers, as well as boost its physical retail presence.

However, PayPal added that prior to closing the acquisition, the CMA initiated a probe of the deal and it is working with the authority “as it conducts its review”.

The company agreed to keep PayPal and iZettle brands and operations separate, pending completion of the CMA review. It is unclear how the transaction would be affected should the competition watchdog now raise any objections.

Bill Ready, COO at PayPal, said iZettle brings a suite of products and services which allow merchants to “meet their customers where they are online, in store, or via mobile”.

“This is another step in our journey toward democratising commerce tools to help businesses of all sizes thrive,” he added.

Jacob de Geer, co-founder and CEO of iZettle, now joins PayPal to continue to lead the company, reporting to Ready, with iZettle co-founder and executive chairman Magnus Nilsson, also joining.

The deal will expand PayPal’s in-store presence to 11 new markets and accelerates its aim for omnichannel commerce in Australia, the UK and US.