LONDON -- PayPal and Vodafone have agreed to enable customers in Europe to make contactless payments with Android smartphones at stores, restaurants and other retail locations, with transactions funded from their PayPal accounts.

The agreement will enable millions of PayPal customers in Europe to opt to use the Vodafone Wallet to pay for goods and services at the point-of-sale using their phones with a Vodafone NFC SIM, currently supported by more than 70 Android smartphone models. PayPal customers in several European countries will be able to choose to add their accounts to the Vodafone Wallet during 2016.

Vodafone customers who do not have a PayPal account will be able to sign up for one from within the Vodafone Wallet app.

Users will pay quickly by tapping their phones against a contactless point-of-sale terminal. The service will be available at millions of retail outlets around the world displaying the contactless payment symbol. Customers will be able to see details of their transactions in the Vodafone Wallet app and through PayPal’s mobile app and website.

Vodafone Wallet users can already register and pay contactlessly using Visa and MasterCard payment cards, or by using a prepaid card loaded with cash in advance. Today’s announcement will expand this service to allow millions of PayPal customers to pay with their PayPal account.

PayPal and Vodafone have developed the wallet solution in partnership with Raphaels Bank and Carta Worldwide.

Stefano Parisse, Group Director Consumer Services, Vodafone Group said: “We are excited to allow millions of PayPal customers to make payments at the physical point-of-sale using their Vodafone Wallet, which provides highly secure mobile payments. Vodafone customers will now enjoy the ability to use PayPal to fund payments made using the Vodafone Wallet, which is the industry’s most comprehensive solution for offline and online payments.”

Rupert Keeley, CEO, PayPal (Europe) S.à.r.l. & Cie, S.C.A, said, “Money is going digital, and the smartphone is at the centre of this transformation. Our partnership with Vodafone will enable millions of our customers in Europe to make contactless payments for the first time in their favourite high street stores using their mobile phones.”

The Vodafone Wallet is currently available in Germany, Spain, the UK, Italy and The Netherlands. Customers can already add loyalty cards into the Vodafone Wallet and since 2013 have used Vodafone Wallet to pay for goods and services.

Vodafone Group plc (NYSE: VOD)
PayPal