New EU rules: PayPal brings contactless payments to German iPhones
Earlier this month, PayPal announced that it would introduce contactless iPhone payments in Germany, and German iPhone users can apparently already use this feature. According to MacRumors, some customers in Germany can already use PayPal as an alternative to Apple Pay.
PayPal can be used for NFC tap-to-pay like Apple Pay, initiating payments in the same way. Users in Germany can set the payment service as their default payment app instead of Apple Pay. Use the side button to open the app as a payment option for contactless payments in retail stores.
If PayPal is not set as your default payment method, you can still make contactless payments using the app. Tap to pay works because Apple has to allow third-party apps to use the NFC chip of the iPhone in Europe due to the Digital Markets Act. Apple had previously restricted access to NFC for payments, allowing contactless payments only via Apple Pay.
The new regulations allow third-party apps from payment services and banks to access the full functionality of the NFC chip, offering iPhone users an alternative to Apple Pay and the Wallet app.
Germany is the first test market for PayPal
Germany is the first test market, but the rollout is expected to be expanded to other European countries in the coming months. For contactless payments, German iPhone users need the latest version of the app and a compatible debit or credit card. In addition, the respective store must accept Mastercard payments.
The tap-to-pay options are limited to the iPhone and do not work on the Apple Watch, as Apple has not been required to enable NFC on the Apple Watch. PayPal also cannot bring the contactless payment option to the US or introduce it in other countries unless those countries enact similar rules requiring Apple to expand NFC access.
To attract customers to PayPal instead of Apple Pay, the company offers cashback promotions in the app and will add an installment payment feature with options for six, twelve, or 24 monthly installments for purchases in the future.
NFC access is available for banking and wallet apps in the European Economic Area, which includes the 27 countries of the European Union, plus Iceland, Liechtenstein, and Norway.
