For many Shopware merchants, PayPal has long been viewed as just another payment option - a button in the checkout that some customers prefer. And not just for merchants. During a recent road trip visiting German Shopware partners, they learned a thing or two about PayPals’ products from Stefan Martens, Developers Commercial Lead at PayPal, that we felt needed more attention. Cross-border e-commerce presents unique challenges beyond translation and shipping logistics. Payment processing across different countries involves managing local payment preferences, high costs related to currency conversion and accepting foreign currencies, and different rules and regulations.
For DACH region merchants, international expansion is increasingly attractive: Switzerland's strong franc and Germany's export-driven economy make selling cross-border a natural next step, while studies show that European cross-border e-commerce is expected to surge with annual growth rates of 29% through 2031. Shopware, with its built-in sales channels, extensive integration marketplace, and language packs, is already uniquely positioned for international expansion - the payment infrastructure just needs to match this readiness.
The Hidden Costs of Payment Processing
When evaluating payment processing costs, many merchants focus solely on advertised transaction fees, missing the complex reality of international commerce. PayPal's global reach significantly lowers both risk and cost of accepting foreign currencies, as transactions are easily paid out in euros or dollars regardless of the original payment currency. This eliminates the need for multiple currency accounts and reduces the risk from changing exchange rates.
The numbers become convincing when considering the full payment stack: Many merchants maintain separate contracts for credit card processing, PayPal, Buy Now Pay Later services, and local payment methods. Each requires technical maintenance, separate reconciliation, and often includes overlapping fees. Direct PayPal integration consolidates these services under one agreement with potentially better rates across all payment types.
Local payment methods are also supported through PayPal, for example iDEAL, the dominant Dutch payment method. For merchants selling into the Netherlands, this alone justifies reconsidering payment architecture. During peak seasons, like Black Friday and Christmas, PayPal also enables financing options through Pay Later services (BNPL), boosting average order values, as customers spread purchases without interest charges.
PayPal World
PayPal World, the platform's global infrastructure, supports approximately 2 billion consumers across 200+ markets, understanding the nuances of regional payment preferences. Payment preferences vary significantly even within Europe. German consumers often prefer invoice payments, Dutch customers choose iDEAL, French shoppers opt for Carte Bancaire, while Scandinavians use mobile solutions such as Swish. Through PayPal's unified infrastructure, merchants offer these localized options without managing dozens of individual integrations. With quarterly rollouts planned, merchants integrating today are automatically positioned for tomorrow's payment preferences.
Currency Management and Strategic Growth
Currency challenges become clear through real merchant experiences. A German fashion retailer receiving orders from the UK, US, and Asian markets faces volatile exchange rates that can vary receipts by 20% or more for high-value items when dealing with pounds, dollars, and various Asian currencies. PayPal provides real-time conversion transparency, with instant payout features under development to reduce risk during the waiting period and international pricing complexity.
The combination of cost savings and international capabilities creates strategic opportunities. Businesses previously focused domestically due to payment complexity can now consider global expansion. Direct integration saves money for marketing efforts or improves profit margins, while simplified international payment acceptance lowers barriers to testing new markets. Local payment methods and buyer- and seller protection add to savings through improved conversion rates, making the total economic impact substantial
