PayPal will reportedly host stock-trading on its platform for U.S. customers, as the American financial tech company welcomed a brokerage industry veteran to manage the new feature, cited by CNBC.
Rich Hagen, the co-founder and former president of brokerage Ally Invest, is now Paypal’s chief executive officer of an undisclosed department called “Invest,” according to his LinkedIn profile.
Hagen’s current job description showcases that the San Jose, California-based company is working on “exploring opportunities” in the consumer investment business.
After adding the ability to trade cryptocurrency on the platform, PayPal’s move in exploring stock-trading comes after 10 million new individual investors have entered the market in the first half of this year, according to JMP Securities, a full-service investment banking and asset management firm.
Yet, this isn’t the only factor that triggered the new interest in the stock market.
From online orders during the COVID-19 pandemic, to government taxes and viral events such as the rise of GameStop, all these elements caused a new spark in the stock market that surely caught the tech giant’s attention.
“In order to offer stock trading to customers, it’s possible PayPal will partner with or buy an existing broker-dealer. According to one source, PayPal has held already discussions with potential industry partners,” CNBC stated.
PayPal’s plans are still under the public radar, with a source familiar with the idea noting to CNBC that it’s unlikely that the trading feature will roll out this year.