A new agreement between Deutsche Bank and PayPal to deliver enhanced payment solutions was announced on 13 January 2026.

The long-standing relationship between the bank and the US-based online payments giant has now been expanded to cover the US, Europe, and Asia-Pacific.

Under the expanded agreement, Deutsche Bank will scale up merchant settlement payouts and begin withdrawals and collection solutions for PayPal in the US.

The bank will also support PayPal with solutions in Europe and Asia-Pacific. The collaboration builds on the considerable volume that Deutsche Bank already processes annually for PayPal, providing scalability and resilience.

“This partnership reflects the deepening of a strong relationship that we have nurtured for more than a decade”
Ole Matthiessen, Global Co-Head of Corporate Bank at Deutsche Bank

Ole Matthiessen, Global Co-Head of Corporate Bank at Deutsche Bank said: “This partnership reflects our shared commitment to innovation, as well as the deepening of a strong relationship that we have nurtured for more than a decade with PayPal.”

Kausik Rajgopal, EVP for Strategy, Partnerships and Corporate Development at PayPal, commented: “By combining PayPal’s global reach with Deutsche Bank’s expertise in cash management and merchant solutions, we are adding more resiliency and diversification to our platform.

“With this expansion we will be able to grow the commerce solutions we deliver to our customers worldwide.”

“PayPal’s global reach is combining with Deutsche Bank’s expertise in cash management and merchant solutions”
Kausik Rajgopal, EVP for Strategy, Partnerships and Corporate Development, PayPal

Deutsche Bank’s previous partnerships with PayPal include a 2013 agreement that saw the bank¹ develop an accounts receivable manager (ARM) solution for SEPA (single euro payments area)², designed to help global organisations streamline and simplify the complexities of cross-Europe receivables management.

The payer identification solution allows for auto reconciliation of incoming SEPA credit transfers, enabling PayPal to use millions of IBANs (International Bank Account Numbers) for its customers. This provides fully automated payer identification without the need to match existing client data and improves auto reconciliation rates for PayPal by up to 100%.

Lead image and headshot of Kausik Rajgopal: © PayPal

Sources

¹ See Deutsche Bank and PayPal Launch Cash Management Solution at theglobaltreasurer.com
² See ARM for SEPA at corporates.db.com