Paypal in store, payments with the app: how to do your shopping in installments

PayPal is set to revolutionize in-store payments with the launch of a new plan across Europe. The new system includes the introduction of contactless payments via smartphone, integrated directly into the PayPal app.

For years, PayPal has been one of the most popular solutions for online purchases, appreciated for the possibility of making transactions without sharing your card details with each site and for the payment service in three installments at zero interest, increasingly popular also in Italy.

When will it arrive in Italy?

There are no exact dates yet, but within a few weeks, PayPal’s first contactless mobile wallet will be launched nationwide, officially debuting in Germany and Europe. It will be available via the latest version of the PayPal app for Android and iOS devices and will allow users to pay quickly and securely at any point of sale that supports contactless payments with Mastercard . For the first time, the app will offer a complete overview of online and offline spending in a single interface.

Joerg Kablitz , Managing Director of PayPal Germany, Austria and Switzerland, commented on the news:

“As technology advances, the benefits of digital payments in stores are becoming harder to ignore. Cash has an important role, but we know many consumers and businesses are ready for innovative alternatives. Simply put, we believe PayPal is better than cash. Our app will make it easy and safe to pay with your phone in stores; it will give you more choice about how and when you pay; and even better, PayPal will help put money back in your pocket.”

According to Kablitz, this is PayPal's largest investment ever in developing customer solutions in Germany. The launch is expected soon and, if the experiment is successful, it is likely to be extended to other European markets , including Italy.

How the new service will work

While official details are still limited, the new PayPal service in physical stores will work similarly to what Google Pay, Apple Pay , and Samsung Pay already offer. Using the NFC chip built into the smartphone, users will be able to make payments at the POS with their PayPal account, turning the phone into a true digital wallet.

As already mentioned, transactions will go through the Mastercard circuit, ensuring broad acceptance of the service at any merchant enabled for contactless payments. In addition to the ease of use, users will also have the option of dividing the amount into convenient installments: 3, 6, 12 or 24 months, with a simplified procedure free of excessive bureaucracy. While payment in 3 installments should remain interest-free, as already happens for online purchases, longer options could include the application of a rate. A move that could significantly change the habits of Italians, who are already using installments extensively with Paypal and Klarna .

To make the user experience easier, PayPal will update the mobile app with a new section dedicated to in-store payments, similar to what we've already seen with Google Wallet and Apple Wallet . It is possible that they will also introduce a quick authentication system, separate from the standard login, to make accessing the virtual wallet even more immediate.

This evolution was made possible by the new European regulation that forced Apple to allow third-party apps to access the iPhone's NFC chip . Thanks to this opening, PayPal will finally be able to use the iPhone's chip to offer its contactless payment service to everyone, without platform limitations.