Berlin/Frankfurt/Dreilinden, Germany, October 10, 2018 – During the next couple of days, PayPal will become available as a payment option in Google Pay for all of its 20.5 million German customers. They simply have to add their PayPal account as a payment method in the Google Pay app and can then directly pay with their Android smartphone at all 8 million contactless Mastercard acceptance points worldwide. Acceptance points include, for example, grocery stores, retail outlets, cafes, restaurants or taxis – in other words, wherever contactless payment is offered. The enabling technology behind this is a digitized Debit Mastercard that is automatically being linked with the PayPal account in the background and then services as a funding source for all purchases made via Google Pay.


Easy to Set Up, Easy to Use

Android users simply need to download the Google Pay app to their smartphone and link their PayPal account to Google Pay. When adding the PayPal account as a payment method in the Google Pay app, a digitized Debit Mastercard issued by PayPal is being generated. In the background, this card that is available purely digital in the Google Pay app is linked to the PayPal account and serves as a funding source for purchases made via Google Pay. For contactless payments at checkout, customers unlock their Android smartphone and place it at the NFC terminal. The Google Pay app does not need to be opened for this, nor is an Internet connection required. The amount will be paid directly through Google Pay using PayPal. PayPal customers will find the details of their transactions in the overview in their Google Pay app as well as in their PayPal account.

PayPal_Michael Luhnen

"Our customers already use PayPal in many different ways, online and in app. Now they can also make purchases in store at the cash register," says Michael Luhnen, Managing Director of PayPal Germany, Austria and Switzerland. "Together with our partners Google and Mastercard, we now offer our 20.5 million German customers the opportunity to also use PayPal for contactless payments with their Smartphone.”

Google_Philipp Justus

“Today’s customers want to get things done faster than ever before, whether they order groceries or buy a new pair of shoes. With Google Pay, we are making it easier to pay in apps, on websites and at the point of sale. We are very pleased that together with PayPal and Mastercard we can offer this service to even more Android users”, said Philipp Justus, Vice President Central Europe, Google.

Mastercard_Peter Bakenecker

"By working together, PayPal and Mastercard are highlighting their shared vision of providing consumers with the widest selection of payment methods possible. We are delighted that PayPal has chosen the digitized Debit Mastercard as an innovative, internationally operating product to offer its customers a perfect solution", says Peter Bakenecker, Division President of Germany and Switzerland at Mastercard. "With partners such as Google and PayPal, we are driving innovative payment technologies and are convinced that mobile payments will spread quickly."


Data Security as Usual

As usual, when paying with Google Pay, the financial information stored in a customer’s PayPal account remain with PayPal. The financial information is not saved to the mobile device or the merchant’s system. Encryption technology is being used for the payment process, saving unique number combinations on the device, so-called tokens. The token is associated with a dynamic security code that changes with each transaction. When paying via the NFC technology only these tokens and their expiration dates are transmitted in encrypted form from the smartphone to the respective point-of-sale terminal.


Wide Acceptance for Contactless Payments

According to Mastercard, the number of merchants in Germany that accept contactless Mastercard payments in Germany – and thus Google Pay – has increased by 73 per cent over the past year. By 2020, all payment terminals in European retail stores will support contactless technology. In Europe, almost every other transaction is handled in a contactless manner nowadays. In Germany, the number of contactless transactions with Mastercard has more than tripled compared to the previous year. In the meantime, 15 per cent of payments at German checkouts are contactless – with an upward trend.


Further information can be found at https://pay.google.com/intl/de_de/about/paypal/ and https://paypal.com/de/webapps/mpp/google-pay.


About Google

Google’s mission is to organize the world’s information and make it universally accessible and useful. With services and platforms such as Search, Maps, Gmail, Android, Play, Chrome and YouTube, Google pays an important role in the everyday life of billions of people and has become one of the most famous companies worldwide. Google is a subsidiary of Alphabet Inc.


About Mastercard

Mastercard (NYSE: MA) is a technology company in the global payments industry.  We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories.  Mastercard products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone.  Follow us on Twitter @MastercardDE, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news on the Engagement Bureau.


About PayPal

Fueled by a fundamental belief that having access to financial services creates opportunity, PayPal (NASDAQ: PYPL) is committed to democratizing financial services and empowering people and businesses to join and thrive in the global economy. Our open digital payments platform gives PayPal’s 244 million active account holders the confidence to connect and transact in new and powerful ways, whether they are online, on a mobile device, in an app, or in person. Through a combination of technological innovation and strategic partnerships, PayPal creates better ways to manage and move money, and offers choice and flexibility when sending payments, paying or getting paid. Available in more than 200 markets around the world, the PayPal platform, including Braintree, Venmo and Xoom, enables consumers and merchants to receive money in more than 100 currencies, withdraw funds in 56 currencies and hold balances in their PayPal accounts in 25 currencies. For more information on PayPal, visit https://www.paypal.com/about. For PayPal financial information, visit https://investor.paypal-corp.com.


Media relations contacts:


Lena Heuermann, Pressesprecherin // Head of Product Communications


+49 162 212 27 45



Juliane Schmitz-Engels, Head of Communications Germany and Switzerland


+49 172 188 07 20



Sabrina Winter, Head of Communications DE/AT/CH


+49 151 5266 1754
Photo of Juliane Schmitz-Engels
Juliane Schmitz-Engels, Director, Communications Germany and Switzerland