In the United States, eBay had shelled out $1.4 billion to buy PayPal in 2002. But it was slow to integrate the company and roll it out to China. To be fair to PayPal, regulatory obstacles in China were an important factor in the delay: The country’s banking sector is closely guarded by the government. Also, China’s currency is not freely convertible, meaning that foreign payment providers are banned from facilitating international transactions or offering credit.
