PayPal Launching Contactless iPhone Payments in Germany to Compete With Apple Pay
PayPal today announced that it is planning to debut contactless payments in Germany, allowing German iPhone users to make tap-to-pay purchases in stores using their PayPal accounts.

PayPal is able to offer this feature because Europe's Digital Markets Act has forced Apple to open up the NFC chip in its devices to third-party apps. NFC payments are available in apps without the need for Apple Pay or the Wallet app, allowing third-party payment services and banks to offer their own tap-to-pay solutions on Apple devices.
European users are able to choose a default app that is activated when an iPhone is near an NFC terminal or when the side button on the device is double pressed, so paying in stores with PayPal is as seamless as paying with Apple Pay.
PayPal says it will launch its first contactless mobile wallet "in the coming weeks," and Germany will be its first test market. Using the latest version of the PayPal app on an iPhone, PayPal customers will be able make in-store purchases with PayPal wherever contactless Mastercard payments are accepted.
To lure customers to use PayPal over Apple Pay, PayPal is offering cashback offers in the PayPal app and will eventually support a pay over time feature with options for six, 12, and 24 monthly installments for purchases.
NFC access is available for banking and wallet apps in the European Economic Area, which includes the 27 European Union countries plus Iceland, Liechtenstein, and Norway.
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