PayPal is facing new kinds of challenges overseas as it counts on BRIC countries for growth. BRIC stands for Brazil, Russia, India and China, and eBay Inc. has been making a big deal about the opportunities they provide over the past few years. But its payment unit is also facing some challenges in those emerging markets.
A new report out of China says companies there are nervous about U.S. court-ordered seizures relating to counterfeits. A seller told the Global Times that an estimated 5,000 PayPal accounts in China were frozen since April 2014 due to brands filing lawsuits and freezing their accounts.
In Russia, meanwhile, the Russian Legal Information Agency reports that Russian Communist Party lawmakers are expected to file a request for regulators to look into PayPal’s decision to stop operating in the Republic of Crimea following U.S. sanctions and “consider stripping PayPal of its Russian license for banking operations in rubles and foreign currency.”
The potential for growth in such markets is enormous for companies such as PayPal, but there are clearly some unique challenges to contend with as well.