PayPal, the U.S online payment Ebay subsidiary plans to enter into overseas payment markets in China and India. PayPal is expected to meet strong competition from established online payment companies in China according to analysts.

The company is already used to facilitate cross border transactions but is now looking to make its services available domestically, with the Chinese market representing 193 million e-commerce users.

Dickson Seow, PayPal spokesman, said today: "We are currently applying for a domestic payment license in China and are intending to do the same in India in the future."