PayPal is rolling out contactless payments for iPhone users in Germany, moving directly into Apple Pay’s turf.
Starting this summer, shoppers can use the PayPal app to make tap-to-pay purchases in stores, bypassing Apple Wallet entirely. This marks the company’s first full-featured mobile wallet for in-store payments.
The update comes after Apple was forced to open its NFC chip to third-party apps in the European Union. With this access, PayPal can now offer its payment solution that works on iPhones without needing Apple Pay.
Germany First to Get the New PayPal Wallet
The feature will go live in Germany in the coming weeks. iPhone users with the latest PayPal app can pay at any terminal that accepts contactless Mastercard payments. Customers can also set PayPal as their default tap-to-pay app, allowing fast checkout with a double press of the side button.
To attract users, PayPal is offering cashback through the app. It will also introduce a new pay-later option called “installment payment to go,” letting shoppers split in-store purchases into three, six, twelve, or twenty-four monthly payments—all managed within the app.
EU Regulation Sparks New Mobile Payment Options
This move is part of a broader shift in Europe’s digital payments landscape. The Digital Markets Act, which came into effect last year, requires Apple to give competitors access to key hardware like the iPhone’s NFC chip. That shift has opened the door for banks and fintech apps to launch alternatives to Apple Pay.
“Cash continues to play a role, but we know that many consumers and businesses are ready for innovative alternatives,” said Jörg Kablitz, Managing Director of PayPal Germany, Austria, and Switzerland. “This is PayPal’s largest investment in product development for Germany.”
As reported by PayPal’s newsroom on May 5, users will also be able to view all their online and in-store purchases in one place, simplifying tracking and budgeting.