San Marino is a tiny country located within Italian territory, using the euro without a currency of its own and relying on the Italian economic sphere for much of its banking and card infrastructure. Italy has traditionally had a high share of cash usage but is rapidly shifting to card and digital payments, and within this trend, PayPal offers consumers accustomed to cross-border online purchases a payment method without exposing card details. The operator covers the eurozone through its Luxembourg European entity (licensed by the CSSF).

Since San Marino's own domestic market is very small in population, a more realistic approach for Korean merchants is to target Italian-speaking consumers together rather than San Marino alone. In categories that require international payment, such as tourist souvenirs, digital content, and small specialty stores, PayPal's account-based payment lowers the barrier to a first purchase.

When a customer selects PayPal at checkout and logs into their account, the payment is approved via the linked balance or card, and no financial information is passed to the store. PSD2's Strong Customer Authentication (SCA) applies to card-based payments. Funds generated in euros (EUR) are collected and converted by Hecto Financial, then settled to the Korean merchant in one of USD, KRW, or JPY as selected under contract.

Through Hecto Financial, a Korean corporation can consider PayPal acceptance without a local contract in San Marino. Since San Marino uses the euro and PayPal's European entity covers the eurozone, a local license is not required, but the applicable currency, settlement terms, and fees vary by industry and transaction volume. Details need to be confirmed before signing a contract.

• Business registration country

  Confirm whether a contract is possible on the basis of a Korea-registered business

• Sales channels

  The integration method and priority differ depending on your online sales channel mix, such as owned storefronts, open marketplaces, and mobile apps

• Product categories

  Advance confirmation is needed as to whether your category falls under the merchant policy restrictions of the PayPal operator

• Regulatory confirmation

  San Marino is not an EU member but uses the euro under an agreement and is supervised by the Central Bank of San Marino (BCSM). Confirm PayPal's European entity's compliance with PSD2 and SCA (see official sources below)

PayPal payments from San Marino customers are made in euros, which Hecto Financial collects and converts before settling to the Korean merchant in the currency designated under contract—USD, KRW, or JPY. The settlement cycle and fee rate follow contract terms. Refunds are linked to PayPal's buyer protection process, and it is advisable to set the refund processing deadline in advance, taking into account the 14-day withdrawal right in line with EU consumer practice.