PayPal has announced that it will launch its first-ever pilot of NFC retail payments in Sweden for the holidays, according to Mobile Payments Today.

The company has partnered with Swedish mobile banking and payments provider Accumulate to deliver PayPal Instore, a new mobile payments app for Apple and Android smart phones.

The app will be accepted at two Stockholm retailers: sports equipment provider Alpingaraget and electronics outlet Webhallen. Both retailers will offer NFC-enabled stickers that can be affixed to the customer’s smart phones to make contactless purchases at the point of sale.

To use the service, customers need only download the app to their smart phone and punch in the information on the NFC tag. When tapped against an NFC-enabled Point AB reader, the app shows the item to be purchased and any available discounts then asks the customer to confirm the purchase.

According to MPT, PayPal is using the holiday trial to gather feedback from merchants and customers before a wider roll out next year.

Read more here.