PayPal Hits the Road with Uber Deal (Nov. 19, 2013)
Add car rides to the ever-growing list of things that can be purchased with PayPal, now that the popular Uber service has
begun accepting fares via the payments giant. Starting today, riders in the U.S., France, Germany, Italy and the Netherlands will have the option to pay for Uber rides with PayPal. Previously, riders only were able to pay with credit cards linked to their Uber accounts.
While the move certainly broadens the payment options for Uber’s existing users, adding PayPal also could help the car service attract new riders who don’t have or want to use a credit card. “Working together, we are able to help expand Uber’s global reach and provide an easier way for consumers to experience their first Uber ride,” Stan Chudnovsky, vice president of growth, PayPal, wrote on the company’s blog. “In countries where credit card use is not as prevalent, the ability to pay with PayPal is a big win for consumers.”
With the deal, Uber is the first company to integrate PayPal’s new mobile SDK, which was unveiled earlier this year and billed as a way for third-party developers to streamline in-app PayPal payments by enabling customers to make purchases without having to leave the app and go to a secure mobile login page. PayPal said the mobile SDK will be available to additional developers early next year.
The Uber deal also builds upon the recently announced $800 million acquisition of e-commerce processor Braintree Payment Solutions by PayPal’s parent company, eBay Inc., which will bring Braintree under the PayPal business unit. That purchase was seen by many industry observers as move to integrate PayPal with the mobile-based startups that use Braintree to process payments, a list that includes Uber, LivingSocial and Airbnb.
