PayPal aims at Robinhood with its new Stock trading options as it conducted discussions to acquire a broker-dealer but is unlikely to launch a new investment service this year as we read more in our latest cryptocurrency news.
American payment giant PayPal is exploring new ways to offer stock trading after launching crypto trading services a year ago and now PayPal aims at Robinhood as it looks to buy or partner with a broker or a dealer to introduce its own stock service to compete with rivals like crypto app Robinhood. Citing anonymous sources, the report noted that PayPal conducted relevant discussions with potential industry players but will not launch the new investment service this year. According to CNBC, PayPal’s potential approval as a brokerage company by the Financial Industry Regulatory Authority could take up to 8 months.
As a part of the alleged plan, PayPal already hired brokerage industry veteran Rich Hagen as the new CEO for its division known as “Invest at PayPal” and according to Hagen’s LinkedIn page, the executives will be responsible for Paypal’s efforts to explore opportunities in the consumer investment business. Hagen is a co-founder and former president of Ally Investment which is a regulated brokerage business that acquired online brokerage company TradeKing in 2016. the new PayPal executive was president of TradeKing which he co-founded in 2005.
The PayPal representatives said that the company’s potential plan to launch a stock trading service came in line with CEO Dan Schulman’s vision to embrace many more financial services like investment capabilities. The CEO disclosed PayPal’s product vision at the company’s investor day in February. After the news, PayPal shares surged 3.6% while HOOD stocks tumbled more than 6% as per the data from TradingView. Robinhood said that crypto trading saw a huge surge in popularity on the platform, making up to 41% of the revenue during Q2 in 2021.
As recently reported, The company has been gradually building up the crypto offerings and starting Monday, PayPal’s UK customers can buy, sell and hold BTC, BCH, ETH, and LTC. The customers can buy as little as $1.3 worth of crypto using their bank account, debit card, or PayPal balance through a crypto tab on the website and mobile app as well. The UK is the second nation to gain access to these services after the digital payments company rolled out its crypto suite in the US in October 2020 and offers the same four coins to US customers.
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