Amazon and PayPal have partnered together to introduce a new Buy Now Pay Later (BNPL) solution aimed at giving German and Austrian shoppers more flexibility in how they pay for the things they buy on Amazon.
Launching in August, the new solution offers a straightforward and transparent way for customers to pay for items over time, and comes at a time when BNPL popularity is rising across the globe, something which ecommerce brands should make note of.
Amazon and PayPal Launch BNPL Solution in Germany and Austria
In an effort to give German and Austrian shoppers on Amazon a more flexible payment option at checkout, Amazon and PayPal have collaborated on a new BNPL solution. This follows soon after PayPal recently added support for dozens of new payment methods around the globe, as well.
This BNPL solution, called PayPal Ratenzahlung, which means PayPal Installment Payment, will go live in August and give customers shopping on Amazon.de the ability to pay over time for eligible purchases, rather than all at once.
Customers can split purchases between €30 and €10,000 into fixed monthly payments, with terms of 3, 6, 12, and 24 months. Also, PayPal is offering new 36 and 48-month terms that are exclusive to Amazon customers, for those who want even more flexibility for larger purchases.
Speaking about the new payment solution, Rocco Bräuniger, the Country Manager for Amazon DACH, said that “With PayPal Ratenzahlung, available in Germany and Austria on Amazon.de from August, customers can decide to pay over time with clear terms and no surprises — all within the seamless Amazon experience they already know and trust.”
The Managing Director of Germany, Austria, and Switzerland at PayPal, Carola Wahl, also commented on the announcement, saying that “Bringing PayPal Ratenzahlung to Amazon in Germany and Austria marks an important milestone in expanding our Pay Later offerings through the world’s largest ecommerce retailer, giving even more customers access to the trusted PayPal Pay Later experience they already know.”
How it Works
The way the new BNPL solution works is both straightforward and seamless for customers. It’s built right into the checkout at Amazon.de, and the payments are made in monthly installments and automatically debited from a customer’s debit card or bank account.
Buyers can not only review pricing and repayment details upfront, but also track any upcoming payments, view what they’ve already paid, and manage their installments at any time, either online or in the PayPal app.
Customers also get text reminders ahead of payments to ensure nothing is missed or forgotten, and there are no additional fees or penalties if a customer wants to make extra payments or even pay their balance in full at any time.
The Recent Growth of BNPL
This new announcement from Amazon and PayPal makes sense, as it comes during a time when BNPL is growing globally. It’s steadily increasing among Asia Pacific customers, and during the holiday season in the USA, BNPL spending increased by nearly 10%, rising from $18.2 billion in 2024 to $20 billion in 2025.
While once reserved for large and/or luxurious purchases, it’s become more common for people to buy everyday items with BNPL. Also, while people in all age groups and generations use BNPL, it’s certainly more common among younger generations.
BNPL solutions help people get the items they want, while still being able to save money for things like bills or emergencies. In the past, you’d normally need to save up the full amount before buying something you want, but that’s not the case anymore. Also, BNPL solutions offer fast approval, have clear schedules and terms, and often have low credit barriers.
Also, many BNPL solutions don’t have any interest rate or extra charges if you pay on time, which makes it easier to spread purchases out with no risk or additional fees as long as you make the proper payments on time.
While it’s impossible to know which payment methods will be the most common in the future, it wouldn’t be surprising to see BNPL continue to be a popular choice at checkout. Similarly, expect many other companies and platforms to begin to support it over the coming months and years, as they realize it’s something their customers will use and enjoy.
Our Take
Offering More Payment Methods is Never a Bad Thing
Between this new BNPL solution in Germany and Austria, and the dozens of other payment methods that it newly supports, companies and platforms should take cues from eBay when it comes to payments. Instead of restricting payment options or forcing customers to one or two options that you prefer, consider broadening your horizons.
Whether it’s BNPL, digital wallets, mobile cash apps, or even crypto, offering more payment methods ensures that no matter someone’s checkout preferences, you can support them. When you offer payment methods that people are used to, it helps them stay comfortable when shopping from you, keeps things convenient, and often improves your conversions.
On the other hand, if you’re strict with the payment methods you support, it can drive people away and dramatically increase your cart abandonment rates. Also, when expanding to new markets, always do your best to research the payment methods that customers there enjoy most, and accommodate them if at all possible.
