PayPal just made its boldest move yet in the German market — and it could redefine how consumers pay in physical stores. With new features including tap-to-pay, installment options, and cashback rewards, PayPal in-store payments have officially arrived. In this article, you’ll discover:
- What PayPal’s in-store payment rollout includes
- Why Germany was chosen as the launch market
- How “Installment To Go” works in physical stores
- The role of cashback and app integration in boosting loyalty
- What this launch signals for the future of contactless payments
(Image Source: www.newsroom.deatch.paypal-corp.com)
From digital wallet to in-store game-changer
On May 5, 2025, PayPal announced a major upgrade to its German offering — launching nationwide in-store payments using its mobile app. For the first time, German consumers can pay at physical checkouts using their PayPal account via smartphone.
According to Jörg Kablitz, Managing Director for PayPal in Germany, Austria, and Switzerland, the country is the first market worldwide to access this feature-rich update. With this launch, PayPal becomes more than an online payment tool — it’s a fully functioning mobile wallet for physical retail.
New features: What PayPal in-store payments bring to Germany
This isn’t just a minor app update — it’s a full transformation of how PayPal is used in everyday transactions.
1. Contactless Tap-to-Pay
Consumers can now pay in-store using the PayPal app’s Tap to Pay feature, wherever contactless Mastercard payments are accepted. Just unlock your phone, open the PayPal app, and tap to pay — no card needed.
2. Unified transaction history
The new app version gives users a complete overview of both online and in-store purchases in one place — improving visibility and control over spending.
3. Installment To Go
A first-of-its-kind in Europe, PayPal now allows customers to split in-store payments into 3, 6, 12, or 24 monthly installments — with simple applications handled inside the app.
4. Built-in cashback offers
Consumers can activate cashback offers from major German brands within the app. After activation, rewards are automatically applied when using PayPal in-store, boosting incentive and loyalty.
Why PayPal chose Germany first
Germany has historically favored cash, but digital adoption has accelerated rapidly. According to PayPal, now is the right moment to introduce a smarter, more flexible alternative.
“Cash continues to play a role,” said Kablitz, “but we know that many consumers and businesses are ready for innovative alternatives.”
This launch represents PayPal’s biggest investment in the German market to date, reflecting strong local demand and a readiness for mobile-first payment innovation.
What this means for retailers and consumers
As PayPal transitions from a purely online service to a full-fledged omnichannel payment solution, its impact on the retail landscape becomes clearer. The integration of in-store functionality into an already trusted digital wallet brings significant benefits for both consumers and merchants alike:
- More payment flexibility: Shoppers now have the power to pay immediately, delay payment, or split purchases into manageable monthly installments — all within the PayPal app.
- Streamlined checkout: With a tap-to-pay feature, customers can complete purchases quickly and securely using just their smartphones, no physical cards or wallets required.
- Loyalty via rewards: App-integrated cashback offers turn routine transactions into rewarding experiences, boosting consumer engagement.
- Familiar and secure: Consumers already trust PayPal for online payments. Extending that trust to physical stores ensures a smoother transition and quicker adoption.
This in-store rollout doesn’t just keep pace with other mobile wallets — it sets PayPal apart through unique features like installment financing and in-app rewards, tightly integrated into a seamless user experience.
4 ways this launch sets a new standard
PayPal’s entry into brick-and-mortar retail isn’t just a product expansion — it’s a strategic move that redefines how digital wallets serve both consumers and businesses. This launch positions PayPal as more than a payment processor; it becomes a key player in the future of seamless commerce.
Here’s how this new in-store capability sets a precedent for the industry:
- Bridging online and offline shopping
PayPal now tracks and enhances the entire customer journey across channels — from ecommerce to physical retail — creating a more unified and data-rich experience. - Consumer-centric payment design
With tap-to-pay, installment plans, and in-app rewards, the PayPal app gives users greater control and flexibility over how they pay. - Merchant opportunities
Retailers benefit from faster, secure payments and increased purchasing power from consumers using flexible financing — plus valuable behavioral insights. - Cashless momentum in Europe
As Germany becomes the testbed, this rollout could serve as a blueprint for similar expansions across other European Union markets, accelerating the shift to mobile-first commerce.
Final thought: PayPal’s vision for everyday payments
With its in-store payments debut in Germany, PayPal is no longer just a checkout option — it’s a full-service mobile wallet. The company’s goal is clear: to become the most flexible, rewarding, and secure way to pay — better than cash.
As German consumers tap, split, and save with PayPal in-store payments this summer, expect digital wallets to become even more central to retail strategy — in Germany and beyond.
***
