Virtual memory removes the requirement that segments must be in contiguous memory blocks.
A consequence is that external fragmentation is eliminated.
Main idea: Physical memory is though of as being split into fixed sized pages. All pages have the same size. Typically this is on the order of 1K bytes.
If a request for 60K is made, then this would require 60 pages (of size 1K each). Any 60 free pages can be allocated. The 60 free pages do not have to form one contiguous block of 60K bytes. They can be scattered anywhere in physical memory.