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PayPal is set to launch its first-ever contactless mobile wallet for in-store transactions in Germany.
PayPal launches contactless mobile wallet
The move marks a significant strategic push into physical retail for a company historically rooted in online commerce, and represents PayPal’s most substantial investment in product development for German consumers to date.
The new contactless capability will be integrated into the latest version of the PayPal app, available for both iOS and Android users.
Customers will be able to make tap-to-pay purchases at any retailer accepting contactless payments, transforming their smartphone into a versatile payment instrument.
A Unified View of Spending
Crucially, this rollout will also provide users with a unified view of their spending, combining both online and in-person transactions within the PayPal app – a first for the company in the German market.
This consolidated dashboard offers a more seamless and transparent user experience, helping customers track their finances across channels.
Complementing the new wallet is the German debut of PayPal’s Ratenzahlung To Go – an in-store version of its popular ‘Pay Later’ option.
Available exclusively in Germany as the first European market to receive the feature, the instalment service will allow consumers to spread the cost of in-store purchases over three, six, 12 or 24 months.
Shoppers can apply directly within the app, gaining immediate access to flexible credit options when making larger or discretionary purchases.
Introducing Cashback Offers
To further incentivise adoption, PayPal is introducing cashback offers tied to contactless usage.
Users can activate promotions within the app and earn rewards when shopping at participating German retailers. More detailed information on these merchant partnerships is expected to follow.
Joerg Kablitz, PayPal’s Managing Director for Germany, Austria and Switzerland, framed the launch as a pivotal moment for the company.
“Cash still has a role to play,” he said, “but we know that many consumers and businesses are ready for innovative alternatives.
Our app will make it easy and secure to pay with your phone in stores, and provide more control over how and when you pay. Even better – it can help put money back in your pocket.”
The expansion comes on the back of strong financial results.
PayPal reported net income of $1.29 billion in Q1 2025 – a 45% increase year-on-year – as it continues to diversify its business model beyond online payments.
With Germany being one of Europe’s most cash-reliant major economies, PayPal’s move into contactless in-store payments could prove a significant catalyst in accelerating the shift towards digital alternatives.
For more on the Germany Payments Market – CLICK HERE
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