PayPal looks to take on Robinhood with stock trading
PayPal, the American giant global payments platform, has been reported to be exploring stock trading options following its launch of cryptocurrency trading services in 2020.
PayPal is currently considering options to either partner with or buy its own stock trading offerings and compete with crypto-friendly stock trading platforms like Robinhood, CNBC reported on August 30.
The news report detailed that PayPal has conducted discussions regarding stock trading with big industry players. However, the new product won’t be launching until next year. According to anonymous sources, PayPal’s approval for a brokerage firm officially by the Financial Industry Regulatory Authority would probably take eight months or more.
Proceeding with its future offerings plan, PayPal has already secured a big hire, roping in Rich Hagen for the proposed project known as “Invest at PayPal.” Hagen is a brokerage industry veteran who would serve as the new investment venture’s CEO.
Hagen, who is the president and co-founder of Ally Invest, has mentioned in his LinkedIn page hinting at the role, saying his new position at Paypal would be to “explore opportunities in the consumer investment business.”
Hagen’s Ally Invest acquired TradeKing in 2016, which was also headed by Hagen as president, which he had co-founded in 2005.
When approached for comments, PayPal’s representatives maintained that the potential investment and stock trading services embrace CEO Dan Schulman’s long term vision of integrating multiple financial services, including “investment capabilities”, as he publicly shared in February this year.
Following PayPal’s new venture updates, its shares surged 3.6 per cent, whereas Robinhood’s HOOD stock tumbled more than 6 per cent.
