PayPal has unveiled a groundbreaking mobile wallet solution in Germany, marking a global first for the fintech giant as it expands its footprint in the evolving digital payments landscape. The new contactless payment feature allows users to make in-store purchases and access flexible payment options, further bridging the gap between online convenience and offline retail.

The update, integrated into the latest version of the PayPal app, enables German users to pay with a simple tap of their smartphone at any terminal that accepts Mastercard contactless payments. This development reflects the growing demand for frictionless, secure, and compliant mobile payment solutions in Europe’s retail ecosystem.

Notably, Germany becomes the first market where PayPal’s “Pay Later” offering—previously limited to e-commerce—is now available for in-store transactions. Dubbed “Ratenzahlung To Go,” this new feature allows consumers to spread payments over 3, 6, 12, or 24 months, adding flexibility while aligning with regulatory requirements on responsible lending and consumer transparency.

In addition to flexible payments, users can activate in-app offers that provide cashback incentives when they shop at select German retailers. This rewards-driven approach not only boosts customer engagement but also reinforces PayPal’s strategy to support financial inclusion through value-added services.

Joerg Kablitz, managing director for PayPal in Germany, Austria, and Switzerland, emphasized the innovation’s transformative potential. “While cash remains relevant, the market is increasingly ready for smarter, more secure alternatives. With our contactless app, customers gain better control over how and when they pay—and with the added bonus of cashback rewards, we’re helping put money back in their pockets,” Kablitz said.

The launch underscores PayPal’s broader strategy to reshape the payment infrastructure in line with evolving compliance expectations, financial regulations, and consumer behaviors. With digital wallets, buy-now-pay-later (BNPL), and mobile-first experiences becoming central to modern commerce, PayPal’s expansion offers a blueprint for how financial institutions can combine RegTech innovations, compliance automation, and data privacy standards to unlock new value in retail payments.