NEW YORK (AP) -- Car-hailing app Uber is now letting its users pay for their rides using PayPal.
The deal announced late Monday takes eBay's payments subsidiary another step into the physical world. PayPal has started service transactions at brick-and-mortar stores as both worlds continue to meld. The company is also trying to stave off mobile payments competitors such as Square.
For Uber, the deal could make it easier to grow overseas. Uber CEO Travis Kalanick says his company was looking for a partner that understands the banking language of German banks or does credit card processing in Mexico, for example.
Until now, people had to use credit cards to pay for Uber rides, which limited Uber's popularity in countries such as Germany, where most people pay with their bank accounts.