PAYPAL TERMS OF USE FOR GOOGLE PAY

These Terms of Use for Google Pay (“Terms of Use”) constitute a legal agreement between you and PayPal (Europe) S.à r.l. et Cie, S.C.A. (“we” or “PayPal”).

These Terms of Use govern the use of your PayPal Account (“PayPal Account” or “Account”) in Google Pay (“PayPal in Google Pay”). They supplement the PayPal User Agreement that governs your use of PayPal’s services in general.

If there is any conflict between these Terms of Use and the PayPal User Agreement, these Terms of Use shall prevail.

PayPal in Google Pay enables you to make

1. contactless payments at merchants’ contactless-enabled point-of-sale terminals or readers that accept contactless payments with Google Pay provided the merchant accepts Mastercard; and
2. in-app or other digital commerce payments to merchants participating in Google Pay and accepting Mastercard.

To use PayPal in Google Pay you need an Android device (including phones, tablets, watches, and other personal mobile devices) ("Devices") which has been set up for Google Pay.

You may use any German PayPal account in Google Pay, subject to our (and Google Pay’s) discretion based on risk and compliance rules and subject to the PayPal User Agreement and other applicable policies.

To use PayPal in Google Pay, an appropriate bank account must have been successfully added as a Verified (as defined in section 10.7.2 of the User Agreement) funding instrument attached to your PayPal account.

We will issue you with a virtual card (a Mastercard consumer debit card) that enables you to use PayPal in Google Pay. The only purpose of this card is to enable you to use PayPal in Google Pay in stores or with merchants who do not have a PayPal account. This card will be issued free of charge. It is a virtual representation of your PayPal account in Google Pay.

You authorize payments with PayPal in Google Pay by

1. unlocking and placing your Device near a merchant's contactless-enabled point-of-sale terminal or reader (and entering a PIN in case we ask you to do so); or
2. initiating the payment online in Google Pay by clicking on “Pay” or a similar button.

You cannot cancel payments which you have already authorized and to which the payee already consented to. Further details are contained in sections 4.1 and 4.8 of the User Agreement.

When you use PayPal in Google Pay for a transaction, i.e. give a payment order, you are obliged to reimburse the transaction amount to us.

To this end, you authorize us to debit the respective amount from your PayPal balance.

To the extent that there is no or an insufficient balance available to fund such transaction, you hereby authorize PayPal to draw the amount from your bank account via direct debit, to credit this amount in your PayPal balance and to use it immediately for the payment with PayPal in Google Pay.

This means we will prioritize your PayPal balance for a payment with PayPal in Google Pay and only draw the amount from your bank account via direct debit to the extent that the balance is insufficient.

It is possible to maintain balances in different currencies in your PayPal account. However, balances in currencies other than EUR (that were in your PayPal account prior to the transaction) will not be used to fulfil our payment obligation pursuant to section 6.

Example: You have a US dollar balance in your PayPal account. If you make a payment to a merchant in the US using PayPal in Google Pay, we will not use this US dollar balance. We will only use your Euro balance and possibly the euro amount which we pull from your bank account via direct debit for the payment. The Euro balance/Euro amount will be converted to US dollars.

The payment is initiated by the payee, namely the merchant.

If we receive the payment order on a business day after 4 pm CET, then the payment order is deemed to be received on the next business day. Execution times (as defined below) only start running at the point of time that a payment order is deemed to be received.

After receipt of the payment order with PayPal, PayPal is obliged to ensure that the transaction amount is received by the payment service provider of the payment service recipient at the latest as follows:

When you make a payment with PayPal in Google Pay, you give us a payment order to process the payment:

• with the virtual debit card (the recipient receiving the payment in a bank account); or
• without the virtual debit card within our own payment network (the recipient receiving the payment in a PayPal account).

PayPal chooses between the two procedures for each payment.

PayPal in Google Pay enables you to withdraw cash provided a merchant offers this possibility and subject, among other requirements, to limits which PayPal and Google may set. It is not possible to withdraw cash with PayPal in Google Pay at an ATM. Section 6 and 7 of these Terms apply by analogy.

We do not charge a fee for using your PayPal Account for transactions with PayPal in Google Pay.

However, if a direct debit payment fails or is reversed, we are entitled to damages subject to the conditions in the PayPal User Agreement.

In case the payment with PayPal in Google Pay involves a currency conversion, Mastercard’s foreign exchange rates will be applied. The exchange rate that is applied will usually be the rate on the date that the transaction was authorized. However, in certain circumstances, the exchange rate that is applied may be the rate on the date when the transaction is processed by Mastercard’s systems which may be different to the exchange rate on the date of the transaction. PayPal does not charge currency conversion fees. Please see Mastercard Currency Conversion Calculator for Mastercard’s rates. Currency conversion charges as a percentage mark-up over reference rates issued by the European Central Bank can be found here.

You are obliged to comply with the following obligations:

1. Take all reasonable precautions to protect your Device, your PayPal account from unauthorized access by a third party. If you lose your Device, you must inform us immediately and delete your Device from the settings in your PayPal account.
2. You are not allowed to:
   1. enable a third party to use your PayPal account in Google Pay;
   2. share your PayPal password or Google Pay PIN or other credentials for your Device with any other person (except for licensed payment initiation or payment account services).

3. If you have a new phone or Device, make sure you delete the virtual card on your previous phone or Device.
4. To prevent the misuse of your PayPal account and information, immediately change your password should you suspect your PayPal account was or could be used soon without your consent.
5. You may use PayPal in Google Pay only on your own Devices, not on Devices of third parties.

Should you notice or suspect that you have lost your phone or other device (which you have used for PayPal in Google Pay) or notice or suspect an unauthorized use of your PayPal account in Google Pay, you must notify us immediately.

To this end, you can contact PayPal’s customer service or call:

1. In the event of an unauthorized payment with PayPal in Google Pay, PayPal is required to refund the transaction amount to your PayPal account to the extent that the amount has already been debited from your PayPal account. If the amount has not yet been debited, PayPal will not charge your PayPal account.
2. Section 14 (1) does not apply if you are liable pursuant to section 15 of these Terms of Use (see below).
3. Section 14 (1) does not apply if you did not inform PayPal about the unauthorized transaction at the latest within 13 months after the day on which the transaction was performed.

1. You are liable to PayPal for the reimbursement of all damages incurred by PayPal as a result of the unauthorized payments with PayPal in Google Pay if:
   1. you acted fraudulently, or
   2. you violated one of the obligations pursuant to sections 12 and 13 of these Terms of Use intentionally or as a result of gross negligence, and

this violation enabled the unauthorized transaction.

2. Your liability would not arise if you could not notify PayPal pursuant to section 13 because PayPal did not provide for the possibility to receive such notices.
3. Section 15 (1) b does not apply if no strong customer authentication was performed in spite of such an obligation applying by law.
4. As soon as you have fulfilled your obligation pursuant to section 13, you are not liable for damages incurred by PayPal after your notification. This does not apply if you acted fraudulently.

We may block, restrict, suspend or terminate your use of your Account in Google Pay at any time without notice and for any reason.

We may suspend or permanently suspend your use of PayPal in Google Pay:

• if you violate the PayPal User Agreement, in particular section 9 of the PayPal User Agreement,
• or violate these Terms of Use;
• or other third-party agreements related to Google Pay.

Sections 9 and 10 of the PayPal User Agreement also apply to PayPal in Google Pay.

In additional to the means of communications listed in section 1.4.2 of the PayPal User Agreement, PayPal may also contact you using the messaging capabilities of Google Pay.

We may change these Terms of Use with two months’ prior notice subject to the conditions in section 1.6 of the PayPal User Agreement.

You may terminate these Terms of Use at any time.

To this end, you may for example remove your PayPal account from Google Pay in the Google Pay App, through Google’s settings or device manager or contacting our customer service.

Nevertheless, the provisions of section 7 of the User Agreement will apply to any rights and obligations arising under these Terms.

We may terminate these Terms of Use, i.e. the use of PayPal in Google Pay, with two months’ prior notice.

Moreover, PayPal is entitled to terminate these Terms of Use as well pursuant to the conditions in sections 9 and 10 of the PayPal User Agreement.

1. PayPal’s Privacy Policy applies for the use of PayPal in Google Pay.
2. Data Sharing: To perform transactions with PayPal in Google Pay and to display the transactions in the Google Pay App, PayPal will share the amount of the payment, the currency, the name of the merchant and other transaction data with Google.
   
   We do not share your bank account details or card credentials which you have indicated in your PayPal account as a funding instrument.

Contactless transactions with PayPal in Google Pay at the point of sale are based on near field communication technology (NFC). If you do not want to use NFC technology, you may remove PayPal in the Google Pay App anytime or you may disenable NFC in your Device’s account settings anytime. No payments with PayPal in Google Pay at the point of sale are possible without this technology. In-app or other digital commerce payments at merchants participating in Google Pay may nevertheless be possible if you disenable NFC in your Device’s account settings.

In addition to these Terms of Use, your use of PayPal in Google Pay is governed by PayPal’s User Agreement (including PayPal’s Acceptable Use Policy). You will for example find provisions and information about the applicable law, jurisdiction, arbitration, limitations of liability, language of the contract, etc.