PayPal launches contactless payment in Germany, challenging Apple Pay and Google Pay

Published: 2025-05-06 19:34:01 ET PYPL

Published on 05/06/2025 at 19:34

Key takeaways

PayPal is launching a contactless payment feature at payment terminals in Germany, making it the first country in the world to offer this service. This move puts PayPal in direct competition with established players such as Apple Pay and Google Pay. The expansion is fueled by a recent European Court of Justice ruling that mandated greater access to NFC technology on iPhones.

To use PayPal's contactless payment feature, users must have the latest version of the PayPal app installed on their iPhone or Android device. The "Tap-to-Pay" feature allows you to pay anywhere Mastercard accepts contactless payments. Simply hold the unlocked smartphone near the terminal to initiate the transaction. The app also provides a comprehensive overview of both online and offline purchases.

Impact on iPhone users

For iPhone users, this feature represents a significant shift, as Apple Pay was previously exclusive to mobile payments on iPhones. The European Digital Markets Act (DMA) forced Apple to open its NFC interface to alternative providers, paving the way for other companies such as PayPal to offer contactless payment options on iPhones. Other players taking advantage of this new freedom include Norwegian payment app Vipps and Germany's Volks- und Raiffeisenbanken, although their offerings have yet to officially launch.

Expanding contactless payment options

Unlike iPhones, Android devices have always had unrestricted access to NFC technology. PayPals entry into the contactless payment market is a direct challenge to services such as Apple Pay and Google Pay. In addition, PayPal offers installment payment options for in-store purchases through "Ratenzahlung To Go," which allows customers to pay in three, six, 12 or 24 monthly installments, albeit with interest charges. Applications for these installment plans are processed in the PayPal app.

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