PayPal increases stake in Shopware

PayPal Holdings Inc. has significantly expanded its ownership in Shopware, a German digital commerce software provider. The payment giant now holds about 41% of the company, up from its previous 11% stake. The move follows PayPal’s acquisition of shares from Carlyle Group Inc.’s investment fund, which had co-invested in Shopware alongside PayPal in 2022.

This step reinforces PayPal’s strategic focus on strengthening its presence in the European e-commerce landscape, particularly in Germany – one of its strongest markets. As reported by Bloomberg, in February 2022, Shopware raised $100 million from two investors: Carlyle Europe Technology Partners IV and PayPal. The investment aimed to fuel Shopware’s expansion beyond its German base and to capitalize on its established position as a leading e-commerce platform provider across Europe.

By taking over Carlyle’s stake, PayPal has become Shopware’s largest external shareholder. Though financial details remain undisclosed, this change grants PayPal a more influential position within the company.

Strategic implications for PayPal and Shopware

The larger stake gives PayPal greater potential influence over Shopware’s product development, future integrations, and merchant strategies. As Shopware powers more than 50,000 online sellers worldwide, primarily across Germany and Europe, deeper integration with PayPal’s payment services could enhance merchant and consumer experiences.

A closer partnership could enable more seamless payment processing, cross-border transactions, and streamlined checkout flows — areas where PayPal already leads in the German market. This step aligns with PayPal’s ongoing strategy to strengthen its role in European digital commerce.

A strengthened partnership in European e-commerce

Shopware was founded over two decades ago by brothers Sebastian and Stefan Hamann. The company has built a reputation for providing open digital commerce solutions that empower merchants of various sizes to create and scale online businesses.

PayPal described the move as a continuation of its commitment to Europe’s digital economy. In a statement, the company noted that the increased investment “reflects our history of building strategic alliances across the ecosystem and commitment to supporting the growth of digital commerce in Europe.”

With this expanded stake in Shopware, PayPal deepens its integration within the European e-commerce infrastructure. By moving from an 11% to 41% ownership, the company positions itself not only as a payment service provider but as a strategic partner in shaping the future of European digital commerce.