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I thought people might like to know how the problem turned out - it's fixed, but I have no idea how or why. I spent some time one night vaguely clicking on everything available in settings with the vague idea of setting the Lenovo back to new and starting over. Then I realised I was reading Nexus help material - my previous tablet was a Nexus 7 but it died. After that I can buy things from Play Apps and pay through PayPal without any problem. I now have calibre complanion - for free - and have used it to download ebooks.
It may of course only be a coincidence that Google seems to thing I'm still using the Nexus.
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