PayPal is set to launch its first mobile wallet in Germany as part of its strategy to increase in-store payments. The wallet will be accessible through PayPal’s app and tap-to-pay at merchants that accept Mastercard contactless payments. The app will provide a unified view of both online and in-store transactions. PayPal aims to differentiate its digital wallet by offering cashback incentives when users make contactless payments at select German retailers. The wallet is similar to Apple Pay and Google Pay, but it may be challenging to stand out in an already saturated market. The launch follows PayPal’s push for its PYUSD stablecoin, which has struggled to gain momentum in a market dominated by Tether and Circle. PayPal plans to support its Pay Later functionality for in-store purchases, allowing users to pay in 3- to 24-month installments. A PayPal digital wallet that combines crypto, BNPL, and contactless payments would align with several dominant trends in the payment industry.