FinTech: PayPal Looking To Offer Stock Trading
The payments giant appoints brokerage veteran for its “Invest At PayPal” division.
A CNBC report revealed Monday that fintech giant PayPal (NASDAQ: PYPL) is considering offering stock trading to individual investors amid a retail trading boom that has drawn millions of new investors into stock markets.
The small guys pile into the stock markets
According to CNBC’s sources, the company could either partner with, or acquire an existing broker-dealer, and that it has already held discussions aiming at potential tie-ups. Its fintech rivals such as Square (NYSE: SQ) and Robinhood (NASDAQ: HOOD) have benefited from rising trading volumes and user engagement on their platforms.
Retail trading volumes have shot through the year – triggered by the pandemic, stimulus payouts, and highly public market events such as the short-annihilating rally in Gamestop (NYSE: GME).
PayPal: Strategic hire
Lending credence to CNBC’s information is PayPal’s hire of Richard Hagen Jr., a broking industry veteran who previously worked for Ally Invest as President.
Hagen is currently CEO at “Invest at PayPal,” according to his LinkedIn profile. That unit, previously unreported, is said to focus on business opportunities in consumer-facing sectors. Hagen founded TradeKing, which was subsequently acquired by Ally Invest.
The company is already offering crypto trading services since last year, and the response encouraged the company to boost its weekly crypto purchase limits for US customers to $100,000 effective July.
At the company’s investor day in February, CEO Dan Schulman hinted that over the long term the company was mulling several financial services including “investment capabilities.”
Stock reactions on report
The news report from CNBC fueled a jump in the share price of PayPal.
The stock closed Monday at $288.47, up by 3.64%.
Meanwhile, Reuters reported that shares in Robinhood crumpled about 7% on Monday on the news of PayPal entering stockbroking and a rumored SEC investigation.
Related Story: PayPal Bumps Up Crypto Purchase Limits Five-Fold
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