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PayPal Runs into BRIC Wall

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.

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.

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.