PayPal to ‘implement consumer stock trading’

PayPal is considering implementing consumer stock trading capabilities, according to sources reported by CNBC.

The move comes after the California-based firm hired Rich Hagen to serve as chief executive of unreported new division “Invest at PayPal”.

The executive’s job description says he is set to “explore opportunities” in the consumer investment space.

Hagen was previously co-founder of online brokerage TradeKing, which was bought by Ally Invest in 2016.

One of CNBC’s sources said that the consumer trading service was unlikely to launch this year, and that the project will need to receive approval from FINRA, the main US brokerage and exchange regulator.

Consumer trading apps have recorded strong performance over the pandemic; US-based stock trading app Robinhood announced last month that it is seeking to treble its current valuation to $34 billion in its upcoming initial public offering.

PayPal’s shares rose 3 per cent following the reports, while Robinhood’s shares have fallen over 7 per cent.

PayPal has recorded strong growth during 2021; the payments giant processed $285 billion worth of payments in the first few months of the year, an increase of 50 per cent on 2020.

The firm has also been active in terms of rolling out new products and services in recent months.

PayPal announced the launch of its new cryptocurrency checkout service ‘Checkout with Crypto’ in March, which enables consumers pay for select purchases at millions of online businesses with their cryptocurrency of choice.

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