PayPal Enters Mobile Contactless Payments: Apple Pay and Google Wallet Face New Rival!

PayPal is set to introduce its own contactless payment solution via its mobile app, aiming to stand out from Apple Pay and Google Wallet by offering installment payments and cashback options.

With established options like Apple Pay on iPhones, Google Wallet on Android devices, and Samsung Pay on Galaxy smartphones, competing with the default payment systems on our devices is challenging. However, in Europe, the Digital Markets Act (DMA) requires Apple and Google to open their systems to allow new players to enter the market. And who better than PayPal, a leader in digital payments, to challenge these tech giants.

PayPal has announced the launch of its contactless mobile wallet starting in the summer of 2025. “With the latest version of the PayPal app for iOS and Android, consumers will be able to securely and conveniently make payments via their smartphones using ‘Tap to Pay’ wherever Mastercard contactless payments are accepted,” we learn.

Can PayPal Compete with Apple Pay and Google Wallet?

PayPal is not taking the easy route with its initial rollout in Germany. Germans still have a strong preference for cash, and it might be challenging to shift their habits. On the other hand, PayPal is likely betting that many consumers are not yet loyal to Apple Pay or Google Wallet. This could help persuade skeptics and carve out a market share in the contactless mobile payment sector. If successful in Germany, France is expected to be next in line for this technology.

To differentiate itself, PayPal will introduce Instalment Payment To Go, a split payment system. Users will need to complete a quick application process within the PayPal app to choose to pay for a purchase in three, six, twelve, or 24 monthly installments. The announcement does not specify whether there are fees associated with this option. Additionally, a cashback program will also be launched to further attract users. It will be interesting to see if PayPal can carve out a niche against the well-established Apple Pay and Google Wallet.