PayPal plans launch of retail trading division
PayPal is looking into the development of a new stock trading platform for its users, according to CNBC.
The decision follows PayPal’s rolling out of new options for customers, including the ability to trade cryptocurrencies.
It now wants to enable the trading of individual stocks, with CNBC reporting the firm has hired brokerage industry veteran and Ally Invest exec Rich Hagen to lead a division labelled Invest at PayPal.
PayPal CEO, Dan Schulman, commented on the company’s investor day earlier this year that a long-term vision for the future at the firm would involve “investment capabilities”.
Schulman’s words came on the back of PayPal announcing a 22% revenue growth for 2020, with its Venmo platform processing $159 billion in payments alone.
CNBC sources say PayPal has already held discussions with potential broker-dealer partners, but that the service would likely not roll out this year.
PayPal’s moves come after a bumper year for retail trading. At the vanguard is fintech Robinhood, which went public on the back of explosive growth and the accrual of 22.5 million users.