PayPal will offer its own contactless smartphone payment solution through its mobile app. To stand out from Apple Pay and Google Wallet, PayPal is focusing on split payments and cashback.
Apple Pay on iPhone, Google Wallet on Android, and even Samsung Pay on Galaxy phones: it's hard to compete with the default payment solutions on our smartphones. However, in Europe, the Digital Markets Act (DMA) requires Apple and Google to open up their systems to allow the emergence of new players. And who is better positioned than PayPal in terms of digital payments to try to overshadow the two tech giants?
PayPal has announced the launch of its contactless mobile wallet starting in summer 2025. “With the latest version of the PayPal app for iOS and Android, consumers will be able to pay securely and conveniently via their smartphone and ‘Tap to Pay’ wherever Mastercard contactless payments are accepted,” we learned.
Can PayPal compete with Apple Pay and Google Wallet?
For its first attempt, PayPal is not choosing the easy way out, as this feature will be rolled out first in Germany. Germans still have a lot of trust in cash and it will undoubtedly be difficult to get them to change their habits. On the other hand, PayPal is certainly banking on the fact that many consumers are still not loyal to Apple Pay and Google Wallet to convince skeptics and gain market share in the contactless mobile payment segment. If the experiment is a success in Germany, France should soon follow.
To stand out, PayPal will offer Instant Payment To Go, a split payment system. Users will have to complete a quick application process in the PayPal app to choose to pay for a purchase in three, six, twelve, or 24 monthly installments. The press release does not specify whether fees apply in this case. A cashback program will also be implemented to further attract users. It will be interesting to see if PayPal manages to make its mark against Apple Pay and Google Wallet, which are already very well established.
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