PayPal launches contactless mobile wallet and in-store financing in Germany

By Gloria Methri

PayPal is set to expand its presence in physical retail across Germany this summer, introducing new contactless payment options and in-store financing features via its mobile app.

The digital payments provider will roll out its first contactless mobile wallet in Germany, the initial market to receive this feature globally. Accessible through the updated PayPal app for iOS and Android, the service will enable users to make payments in-store using their phones at any point-of-sale terminal that supports Mastercard contactless payments.

In addition to in-store payments, PayPal will offer consumers a consolidated view of their online and offline transactions within the app, helping users track their spending across channels more easily.

PayPal is also extending its ‘Pay Later’ functionality to in-store purchases in Germany for the first time. Under the new Ratenzahlung To Go feature, customers will be able to spread the cost of in-store purchases over 3, 6, 12, or 24 months. Applications for instalment plans can be submitted directly through the PayPal app, offering a flexible financing option for larger payments.

To encourage usage, PayPal will launch a cashback reward programme in Germany. Users can activate offers in the app and earn cashback when paying with the contactless wallet in selected partner stores. Additional details about participating retailers and specific incentives are expected to be announced shortly.

These developments reflect PayPal’s growing interest in bridging the gap between digital and physical commerce, offering integrated, app-based payment and financing services tailored for the retail environment.

“As technology advances, the benefits of digital payments in stores are becoming harder to ignore,” said Joerg Kablitz, Managing Director, PayPal Germany, Austria & Switzerland. “Cash has a role to play, but we know that many consumers and businesses are ready for innovative alternatives. Put simply, we believe PayPal is better than cash. Our App will make it easy and safe to pay with your phone in stores; it will give you more choice in how and when you pay; and even better – PayPal will help put money back in your pocket.”

Joerg added, “This is PayPal’s biggest ever investment in product development for our customers in Germany. We cannot wait to launch nationwide in the coming weeks.”