PayPal vs Wise

German e-commerce report: AI now powers most customer chats

The EHI Retail Institute's latest E-Commerce Report, analyzing 1,000 German online shops and marketplaces, reveals widespread adoption of mobile wallets: 97.2% support them, with PayPal leading at 96.3%. Apple Pay grew to 49% (from 37.8%) and Google Pay to 32% (from 23.1%). Invoice purchase remains a German staple at 81.7%. AI is dominant in customer service: 77.9% of existing chat functions are AI-powered, though only 40.8% of shops offer chat at all, meaning 31.8% of all shops have an AI chat. Click & Collect is offered by 34.6% of shops, with 56% of those allowing online payment. The report also highlights that Shopware leads the shop systems market at 12.5%, ahead of Shopify (9.8%) and Magento (7.2%).

• 97.2% of German online shops support mobile wallets, with PayPal leading at 96.3%.
• Apple Pay adoption rose to 49% (from 37.8%) and Google Pay to 32% (from 23.1%).
• 77.9% of customer chats are AI-powered, though only 40.8% of shops offer chat.

BNPL Surges for Large Purchases

Buy now, pay later (BNPL) is gaining significant traction for larger online purchases. According to a representative Verivox survey, 15% of respondents would now prefer to pay for an online purchase over 1,000 euros in installments, up from 9% in 2024. This is the strongest growth among common payment methods. Invoice remains the most popular (29%), followed by PayPal (21%) and cards (14%). The trend is particularly pronounced among lower-income households, with 23% of those earning under 2,000 euros net monthly favoring installments, versus only 7% of those earning over 4,000 euros. However, the rise in BNPL usage also increases the risk of over-indebtedness. New stricter regulations on installment financing, including comprehensive creditworthiness checks, will take effect from November 20. For smaller purchases (25-100 euros), PayPal remains dominant, and installments are rarely used.

• 15% of respondents prefer installment payment for online purchases over 1,000 euros, up from 9% in 2024.
• Invoice (29%) and PayPal (21%) are the most preferred payment methods for large purchases.
• 23% of households with net income below 2,000 euros prefer installment payments, versus 7% of households earning over 4,000 euros.

Klarna's Olivia Butter on Consumer Research, AI, and Trust

Olivia Butter, Head of Global Brand Direction and Strategy at Klarna, discusses the limits of consumer research, the evolution of Klarna from a payments brand to an 'everyday money partner', and the role of AI in marketing. She emphasizes that consumers cannot always articulate what they want, so marketers must use psychology and leadership to present novel solutions. She also outlines Klarna's new global brand campaign 'Shower Thoughts' and its strategy of being culturally relevant to build trust, contrasting with traditional financial institutions. Butter shares insights on team leadership, the importance of consistent brand presence, and her views on the distinction between marketing and brand.

• Klarna is launching a new global brand campaign called 'Shower Thoughts'.
• Klarna has evolved from a 'buy now, pay later' service into a comprehensive money app.
• Olivia Butter believes consumer research should not be used to expect consumers to know what they want.

Revolut plans dual US and UK listing, targeting $200 billion valuation

Revolut, the London-based neobank, is considering a dual stock market listing in New York and London, with co-founder and CEO Nik Storonsky revealing the plans in an interview with Les Echos. The company is targeting a valuation of up to $200 billion for its IPO, expected no earlier than 2028. Storonsky expressed a preference for the US market due to its larger investor pool, but aims to maintain a presence in London. This move follows similar actions by Wise, which moved its primary listing to New York. Revolut was last valued at $75 billion in a funding round, so the target valuation would require nearly tripling its value. The company's US expansion, including conditional approval for a US banking license, is seen as a key factor for the IPO's success. Revolut plans to invest around €2.3 billion annually in growth through 2030.

• Revolut is considering a dual listing in New York and London, targeting a valuation of up to $200 billion.
• The IPO is expected no earlier than 2028, with CEO Nik Storonsky preferring the US market.
• Revolut was last valued at $75 billion in a funding round.

Wise launches 2026 Q2 Mission Update: Price

Wise reduced fees saving customers ~£23m per year as part of its mission to build the best way to move and manage money.

Revolut Wins US Bank Charter, Wise Rejected

The OCC granted Revolut a conditional US bank charter, while rejecting Wise's application earlier in July. This regulatory divergence signals a shift in how US authorities are assessing foreign fintechs. Revolut, with 80 million users, a proprietary AI model trained on 40 billion banking events, and $2.3 billion in pretax profit, gains a federal on-ramp into American banking. The approval is seen as a strategic advantage, particularly through its PRAGMA credit-risk model, which no US neobank can replicate or acquire. This event potentially marks the decline of the sponsor-bank model for major fintechs, as larger players may now pursue their own charters. The article also discusses Anthropic's move to build in-house payments infrastructure, citing its rapid revenue growth from $9B to $65B annualized in seven months, making off-the-shelf billing inadequate. This includes insights into AI-specific fraud challenges and Stripe's $7B+ counter-move with OpenRouter.

• The OCC approved Revolut's conditional US bank charter.
• The OCC rejected Wise's US bank charter application in July.
• Revolut has 80 million users and $2.3 billion in pretax profit.