Hamburg will let citizens pay taxes through PayPal

The move is part of streamlining local financial and tax structure as the city edges one step closer on the path to digital transformation

Yesterday, authorities in Hamburg announced that by the middle of the year, they would introduce PayPal as a valid payment method in the municipality. The initiative is part of the city’s push to harmonise and expand payment methods, making financial interactions much more convenient for citizens.

According to an official statement, PayPal will be the first of the new payment methods the city plans to introduce and as municipal services become more uniform and harmonised, more options will be added.

Moreover, this is a joint project between local tax authorities and the Office for IT and Digitization of the Senate Chancellery, making this move a step towards Hamburg’s digital transformation. Officials say the aim is to increase user-friendliness when using digital administrative services by expanding payment methods.

Choosing PayPal

According to city officials, introducing digital tax payment would improve convenience and ease of access to city services for more residents, making it faster and easier. Finance Senator Dr Andreas Dressel was quoted in a press statement explaining that it would be a big improvement for municipal services.

Additionally, he pointed out that around 32 million Germans use the platform, making it a very common system and a high priority for integration. Senator Dressel also said that more online payment options will follow after the summer release date of PayPal for the city of Hamburg.

Christian Pfromm, Chief Digital Officer of the City of Hamburg, also expanded on the guiding principles of digitalisation as always working from the perspective of the user. With the introduction of various payment systems, the city would address the requirements of modern administration and make sure that contact with the authorities for citizens and companies can be structured in a contemporary and uncomplicated way.