Online payments giant is PayPal is reportedly preparing to compete with online trading platforms such as Robinhood with the launch of a retail trading division.
According to US news broadcaster CNBC, PayPal has hired Rich Hagen, a veteran of the brokerage industry, to head up a new business called Invest at PayPal.
The company introduced the ability to trade cryptocurrencies in 2020 and is now looking to enable its customers to trade individual stocks.
The online trading market has grown in popularity in recent months, particularly in the US where Robinhood launched an IPO following a period of growth that saw its client base grow to more than 22.5 million users while its revenue doubled in the most recent quarter compared to the previous year.
PayPal is reportedly in talks with potential broker dealers although the service is not expected to be operational until 2022.
The move would be in line with the statement made by CEO Dan Schulman earlier this year that PayPal’s long-term future would involve “investment capabilities”.
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