PayPal Expands Contactless Payment Options for Users

Mon 5th May, 2025

PayPal is set to broaden its payment services in Germany by enabling users to make contactless payments at retail locations, similar to existing services like Apple Pay and Google Pay. This new feature will allow users to utilize the PayPal app on their smartphones for transactions at supermarkets, gas stations, and various retail outlets.

The company announced that its first contactless mobile wallet would launch in the coming weeks, marking Germany as the first market for this service. Users will need to have the latest version of the PayPal app installed on their iPhone or Android devices to access this feature.

With the new 'Tap-to-Pay' functionality, users can make payments wherever contactless Mastercard transactions are accepted by simply holding their unlocked smartphone near the payment terminal. The updated app will also provide users with an overview of both their online and offline purchases.

This development is particularly noteworthy for iPhone users, as previously, only Apple's own Wallet could facilitate mobile payments. However, changes brought about by the European Digital Markets Act (DMA) have compelled Apple to make its NFC technology accessible to alternative payment providers. Consequently, PayPal, along with other companies like the Norwegian payment app Vipps and various German cooperative banks, are now poised to tap into this opportunity.

While PayPal's new service will compete directly with established players such as Apple Pay and Google Pay, it also introduces flexible payment options for in-store purchases. Customers can choose to pay in installments over three, six, twelve, or twenty-four months, although interest will apply. Applications for this installment plan can be processed within the PayPal app.

As PayPal enters the physical retail payment space, it aims to capture a share of the growing market for contactless transactions, which has seen increased demand in recent years. With this move, the company is positioning itself as a formidable player in the digital payments landscape, offering consumers a broader range of payment solutions.


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