PayPal plans expansion into stocks and stocks – Internet – News
Last week, HEXUS reported on PayPal’s plans to enable cryptocurrency trading for its UK-based clients. This expansion of the consumer financial services business came to the UK after a period of success in the US. The UK offering is initially limited to buying, holding and selling crypto, but it has expanded to add ‘Checkout with Crypto’ services in the US a few months after launch, which could also occur here a few months later.
On Monday, CNBC reported that PayPal US is now working behind the scenes to implement a way for users to buy and sell stocks and stocks using their accounts. Two sources familiar with the matter spoke with the news agency, explaining that the plan is for users to be able to buy and sell individual stocks.
Rumors and insider information are supported by one of PayPal’s recent top executive hires. Brokerage industry veteran Rich Hagen joined PayPal earlier this year, and he is now CEO of a division of PayPal called Invest at PayPal, CNBC explains. Hagen previously co-founded online brokerage TradeKing, which was acquired by Ally Invest.
Retail investment is currently experiencing a boom. Last year 10 million new accounts were opened, and it is expected that this year we will see roughly that record level matched. A mix of FMH, government stimulus checks, and topical stock trading (Robinhood, GameStop) has garnered a lot of interest. Firms that can enable stocks and stocks to be traded with ease of registration and use, minimizing friction, could benefit from this personal finance movement. PayPal has more than 400 million account holders worldwide.
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With the release of CNBC’s report on PayPal’s stock trading plans, its shares rose 3%, while historic rivals like Robinhood slipped by an equal amount. It is believed that it is probably too ambitious for PayPal to be able to set up and launch its “Invest at PayPal” service this year. It takes at least 8 months to set up a new brokerage firm in accordance with the regulator’s guidelines, according to the CNBC report.