EBay CEO envisions PayPal in more offline settings

(AP) -- The waiter asks: "Will you be paying by cash, credit or PayPal?" The man in charge of PayPal's parent company says you shouldn't be surprised to hear that question within a year.

John Donahoe, the CEO of eBay Inc., tells The Associated Press that although PayPal is known for payments online, the service is eyeing more opportunities offline.

Last fall, PayPal opened its system so outside software developers could create Web services or mobile applications that use PayPal as a payment engine. As an example of the third-party apps in the works, Donahoe described services that would let restaurants or retailers collect payments over PayPal on a customer's mobile phone.

Donahoe knows other companies are racing to provide similar services. He says PayPal's huge user base gives it an advantage.

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