PayPal looks like it might be the next company to take advantage of the booming popularity of retail stock trading. Sources familiar with the company say that it is now exploring options, and the company has even hired a brokerage industry veteran to help lead the charge.
According to a new report from CNBC, the online payments company is currently working on moving into the consumer investment market. It has hired Rich Hagan, an investment industry veteran, to take up the role of CEO in a new division of the company, called Invest at PayPal.
The move comes at the right time for PayPal. The e-commerce giant paved the way for online payments, so it makes sense for the company to capitalize on the increased popularity of consumer stock trading.
Companies like Robinhood and Square, with its Square Cash App, have helped bring stock trading to average citizens. These new platforms, combined with the quarantine aspect of the COVID-19 pandemic and viral trading events like what happened with GameStop, have helped bring more than 10 million new people to the stock trading market over the last year.
As for PayPal, the company still seems to be in the very early stages of development for a platform like this. In order to offer stock trading as a service, the company will need to gain approval as a brokerage firm, either by acquiring an already approved firm or seeking the approval itself.
One source told CNBC that it will be unlikely to see the company offering this service any time this year.
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