PayPal plans to boost its ownership in German ecommerce company Shopware from around 11 per cent to approximately 41 per cent, Bloomberg reports citing familiar sources.

Founded by Sebastian and Stefan Hamann, Shopware offers ecommerce solutions for merchants.

The extra shares are being purchased from a Carlyle Group fund.

PayPal and Carlyle previously invested $100 million in Shopware in February 2022.

A PayPal spokesperson said the deal aligns with the company’s strategy of building partnerships across Europe.

Shopware, which has been in operation for more than 20 years, serves merchants in Germany and internationally.

The impact of the deal remains uncertain, as PayPal’s purchase price and Shopware’s current financial details have not been disclosed.