PayPal announces contactless mobile wallet for payments at the checkout

PayPal wants to position itself as an alternative to the contactless payment services from Apple and Google. Over the course of the summer, the company will integrate its own mobile wallet into its app, which customers can use to pay with their smartphones at payment terminals in stores. According to Paypal, Germany is the world's first market with this function.

PayPal uses NFC interface of iPhones opened by the EU

According to the company, consumers will be able to use the latest version of the PayPal app to pay via "Tap-to-Pay" wherever contactless Mastercard payments are accepted. The app also provides a complete overview of online and offline purchases.

The payment function is available for both Android devices and iPhones. This option is particularly special for iPhone owners, as there was previously no way around the Apple Wallet for mobile payments. The mandatory opening of the iPhone's NFC interface by the EU means that other providers can now also offer contactless payment with the iPhone. The Norwegian payment app Vipps was the first to do so at the end of 2024.

Meanwhile, PayPal is the second provider after the Volksbanken and Raiffeisenbanken to use the iPhone NFC interface for its purposes in Germany. However, both have currently only announced their payment options, but have not yet released them. There are no restrictions on the NFC interface on Android devices, as Apple has practiced to date.

PayPal with "installment payment to go"

Similar to online shopping, PayPal offers "installment payment to go" for in-store purchases. Users can choose between three, six, twelve and 24 monthly installment payments. The application is made in the PayPal app.

PayPal is also introducing a cashback system where users can receive rewards for certain purchases in the app. This only applies to payments made contactlessly with the PayPal app in stores. PayPal does not want to announce details about partners or discounts until later.

With its new offer, PayPal is entering the NFC mobile payment market rather late. Apple and Google in particular are likely to be the market leaders thanks to the applications pre-installed in their operating systems on smartphones. For consumers who do not have a credit card, which is required for Apple's and Google's services, PayPal's solution could be a new option for using their smartphone to make payments.

(afl)