PayPal Launches Contactless Payments In German Stores

PayPal is set to introduce mobile contactless payments in German retail stores, leveraging Mastercard's support to facilitate transactions. This initiative marks PayPal's first significant foray into Germany's in-store payment market, allowing shoppers to use their smartphones for payments at any merchant that accepts Mastercard contactless payments.

The launch is part of PayPal's strategy to integrate its digital payment solutions with Germany's physical retail environment. The updated mobile wallet feature will be available nationwide on both iOS and Android devices in the coming weeks, representing the global debut of PayPal's contactless mobile wallet functionality.

With the latest PayPal app update, users can tap their phones at compatible point-of-sale (POS) terminals to complete transactions. These payments will be processed through Mastercard's established contactless system. The updated app will also provide a combined overview, allowing users to track both their online and in-store PayPal purchases in a single history feed.

In addition to the tap-to-pay feature, PayPal is expanding its "Ratenzahlung To Go" installment payment option to German physical stores. Previously available only for online purchases, this feature enables consumers to split their in-store purchase costs into 3, 6, 12, or 24 monthly payments. Shoppers can apply for the installment plan directly within the PayPal app, either before visiting the store or during the checkout process. This is the first time PayPal has offered its buy now, pay later service for brick-and-mortar shopping in Europe.

PayPal is also introducing cashback rewards for customers using the new contactless feature at select German retailers. Joerg Kablitz, PayPal’s Managing Director for Germany, Austria, and Switzerland, emphasized the company's focus on developing products tailored to the German market. This move underscores PayPal's commitment to enhancing the shopping experience for German consumers by providing convenient and flexible payment options.