Paypal has increased its stake in German ecommerce software company Shopware. The online payment system now has a stake in the company of around 41 percent. The move can strengthen PayPal’s position in European ecommerce.
Shopware is an ecommerce software provider based in Germany. It powers more than 50,000 online sellers worldwide. Most of them are based in Germany and across Europe. In 2022, it raised 100 million dollars from investments by Carlyle, a global investment firm, and PayPal.
From an 11% to a 41% stake
Now, PayPal has increased its investment in Shopware. It has acquired shares that were owned by Carlyle. Because of that, PayPal now has a stake of 41 percent, instead of its previous stake of 11 percent. The financial terms of the deal are not disclosed.
The acquisition could give PayPal more leverage over Shopware’s product development and future integrations
The larger stake could give PayPal more leverage over the ecommerce software’s future integrations, product development and merchant strategies. For example, PayPal can link its payment services more seamlessly with Shopware’s merchant platform. This could streamline cross-border payments and enhance checkout experiences.
Activities in Germany
The acquisition also shows that PayPal is interested in becoming more active in German ecommerce. For the last couple of years, it has already ranked as the most popular payment method in the country.
