PayPal is intensifying its international expansion efforts as competition in the U.S. digital payments market continues to erode its once-dominant position. The company generated approximately $13.53 billion in international revenue during 2024, representing 42.6% of total sales, according to company reports. This strategic pivot toward global markets comes as rivals like Stripe, Square, and Klarna have captured significant market share in PayPal’s traditional strongholds.
The payments giant has announced major investments across emerging markets, including a $100 million commitment to the Middle East and Africa region. Additionally, PayPal has made strategic moves in Brazil and launched its first regional hub in Dubai in April 2025. These initiatives represent a fundamental shift in the company’s growth strategy as it seeks to reverse a stock price decline of approximately 75% since its July 2021 peak.
Dominant Position in European Markets
Germany stands as PayPal’s second-largest market after the United States, with the company processing 64% of all online payments in the country, according to industry data. The strong performance stems from German consumers’ historical preference for digital wallets over credit cards and PayPal’s effective integration of buy now, pay later services. E-commerce market intelligence firm ECDB reports that 93% of German online merchants accept PayPal, the highest acceptance rate globally.
Other European countries also demonstrate strong adoption rates for PayPal international expansion. Italy leads with 91% merchant acceptance, followed by Australia at 88%, and Portugal and Austria both at 83%. Italian consumers particularly value PayPal for its security features, which align with local payment preferences.
The United Kingdom remains a critical European market outside the European Union. In November 2025, PayPal relaunched its UK operations with a £150 million investment. The company is using the UK as a testing ground for PayPal+, its first global loyalty program, signaling the market’s strategic importance for future innovation.
Strategic Investments in Brazil’s Growing Market
Brazil has emerged as PayPal’s most important emerging market, with several key acquisitions and partnerships established over the past two years. In August 2024, PayPal Ventures led a $15 million Series A funding round for Ume, a Brazilian payments provider specializing in consumer financing. The investment targets Brazil’s burgeoning buy now, pay later sector, where approximately 71% of consumers regularly make installment purchases, according to Brazilian credit bureau Serasa Experian.
PayPal’s Brazil strategy centers on integrating with Pix, the country’s native payment rail that serves more than 100 million monthly users. In mid-2025, the company launched its own acquiring services in Brazil, enabling direct payment processing for merchants with reduced transaction fees and faster settlements. Ian Cox, Investment Partner at PayPal Ventures, stated that building infrastructure on public Pix rails allows rapid scaling through instant merchant and consumer onboarding.
PayPal International Expansion Targets Middle East and Africa
The Middle East and Africa represent PayPal’s newest frontier, backed by a $100 million regional investment commitment. Otto Williams, Senior Vice President and Regional Head of PayPal Middle East and Africa, indicated the investment aims to expand connections between local businesses and global marketplaces. The company opened its first regional hub in Dubai in April 2025 and invested in Saudi Arabia-based fintech startup Tabby.
McKinsey & Company projects the MEA region will experience 35% annual growth in fintech net revenue through 2028, compared to a 15% global average. This accelerated growth stems from relatively low fintech penetration, with fintech representing just 1 to 2% of banking sector revenues in Gulf Cooperation Council countries versus 3 to 5% in the United States and United Kingdom.
Global Platform Ambitions
Beyond geographic expansion, PayPal is developing PayPal World, a unified payments platform designed to connect different digital wallets worldwide. The platform focuses on interoperability for international transactions and person-to-person transfers, including integration with Venmo. However, the initiative faces significant challenges, particularly in markets where PayPal lacks established partnerships, notably China and India.
In India, PayPal received in-principle approval from the Reserve Bank of India in April 2025 to operate as a Payment Aggregator for cross-border exports. Meanwhile, the company has increased investments in China, though it arrived later than competitors like Stripe, Adyen, Airwallex, and Payoneer in the cross-border e-commerce segment.
PayPal’s international revenue is expected to reach new highs in 2026 as investments in Europe, Brazil, the Middle East, and Africa mature, though success in China and India will depend heavily on developing local partnerships. The timeline for these investments to significantly impact overall company performance and stock valuation remains uncertain.
