PayPal has introduced contactless iPhone payments in Germany in accordance with new EU rules, enabling users to use PayPal as an alternative to Apple Pay.
German PayPal customers can now utilize NFC tap-to-pay functionality similar to Apple Pay, either by setting PayPal as the default payment app or opening the PayPal app for contactless payments.
The Digital Markets Act in Europe compelled Apple to allow third-party apps access to the iPhone's NFC chip, enabling PayPal to provide tap-to-pay options in Germany and potentially expanding to other European countries.
While PayPal's contactless payment feature is exclusive to iPhones in Germany, it is not available on the Apple Watch due to Apple's NFC restrictions. PayPal aims to attract users with cashback offers and future pay-over-time options.