PayPal
PayPal is one of the world’s largest digital payment platforms, with 439 million active accounts globally as of Q1 2026 and $1.8 trillion in total payment volume processed in 2025. Founded in 1998 and now operating in over 200 markets, it is both a consumer-facing digital wallet and a merchant payment processing infrastructure, serving everything from individual sellers to the world’s largest retailers.
For European merchants, PayPal’s commercial significance varies by market. In Germany, it is the dominant online payment method with approximately 28% of all e-commerce transaction share, ahead of every other payment method including cards. In the Netherlands, Italy, and across broader European markets, it holds a strong but less dominant position. For any merchant selling into Germany, PayPal is not optional. For merchants across Europe more broadly, it is a conversion-relevant addition to the checkout for consumers who prefer not to share card details with unfamiliar merchants, value PayPal’s buyer protection programme, or habitually use their PayPal balance.
PayPal operates two distinct product lines for merchants. The standard PayPal checkout, integrated directly into merchant checkouts, provides the consumer-facing branded PayPal button and pays the merchant a blended transaction fee. Braintree, PayPal’s enterprise payment processing platform now also referred to as PayPal Enterprise Payments, is a full PSP offering card acquiring, PayPal acceptance, and a range of local payment methods under one integration. Braintree’s standard UK pricing is 1.9% plus £0.20 per transaction, with discounted rates and interchange-plus pricing available for merchants processing above defined volume thresholds. Custom flat rates are negotiable for established businesses based on model and volume.
On the consumer checkout side, PayPal’s standard transaction fee for European merchants varies by market and payment method, with cross-border and currency conversion fees applying where relevant. PayPal raised fees for several services in January 2025, including BNPL, which moved to 4.99% plus a fixed fee per transaction in the US, with European equivalent rates applying per local terms. The BNPL product, PayPal Pay Later, is available in key European markets and allows merchants to offer instalment options without the integration overhead of a separate BNPL provider.
Fastlane, PayPal’s accelerated guest checkout product that uses PayPal’s consumer data to pre-fill checkout fields for non-PayPal users, launched in the US and is expanding to the UK and Europe through a partnership with J.P. Morgan Payments. For merchants with high guest checkout drop-off, Fastlane is worth monitoring as it becomes available in European markets.
PayPal introduced PayPal Open in 2025, a unified merchant commerce platform consolidating its payment tools, financial services, and risk solutions under one framework, initially launching in the US with UK and Germany expansion planned.
PSP support for PayPal checkout integration is universal. For Braintree, integration requires a separate Braintree merchant account and approval process.
Relevant markets: Global, with particularly strong merchant relevance in Germany, the Netherlands, and the United States
