Lithuanian e-commerce has developed around bank links and account transfers, but since local bank links don't work for payments to foreign merchants, wallet payments from PayPal (Europe) S.à r.l. (a Luxembourg entity, authorized by the CSSF) serve as a complement. The fact that a buyer-protection dispute process exists lowers the psychological barrier toward an unfamiliar overseas storefront, which is especially meaningful for Korean merchants without local brand recognition.

For merchants selling products Lithuanian consumers can't easily find locally — K-beauty, fashion, merchandise — as a direct cross-border purchase, or businesses with many small-ticket cross-border transactions in the 20-100 euro range, keeping PayPal as a default option helps protect conversion rates.

When a consumer logs into their PayPal account and approves payment, the amount is deducted from the card or account linked to their wallet, and the authorization result is delivered to the merchant instantly. A notable feature is that the login plus device authentication combination handles PSD2's Strong Customer Authentication (SCA) at the wallet level. The authorized euro (EUR) funds are received by Hecto Financial, converted, and settled to the Korean merchant in whichever currency — USD, KRW, or JPY — was set under the contract.

Integrating through Hecto Financial lets a Korean company explore PayPal acceptance without establishing a local entity or a separate local contract in Lithuania. However, because wallet payments handle dispute processes differently from cards, please confirm support conditions by industry and transaction volume through consultation before signing a contract.

• Merchant registration country

  Confirm whether contracting is possible for merchants registered in Korea

• Sales channels

  Integration method and priority vary depending on your online sales channel mix — owned storefront, marketplaces, mobile apps, etc.

• Product categories

  Check in advance whether your products fall under restricted categories according to the PayPal operator's merchant policy

• EU regulatory compliance

  Confirm compliance with EU payment regulations such as PSD2 and SEPA (see official sources below)

Funds from Lithuanian customers' PayPal payments are generated in euros (EUR), and Hecto Financial handles local receipt and conversion, depositing the Korean merchant in a single currency chosen under the contract — USD, KRW, or JPY. PayPal has its own dispute resolution (buyer protection) process, so refunds and claims can be initiated at the wallet level, requiring attention to dispute response deadlines alongside handling the EU consumer's 14-day right of withdrawal.

• Bank of Lithuania (Lietuvos bankas)Official information from the integrated supervisory authority responsible for operating Lithuania's payment systems and licensing and supervising electronic money institutions (EMIs). Where the content of this page differs from actual regulations, the official sources take precedence.