PayPal (NASDAQ:PYPL) is exploring a possible stock-trading platform.
After rolling out the ability to trade cryptocurrencies last year, the payments giant has been exploring ways to let users trade individual stocks, according to two sources familiar with the plans.
The San Jose, California-based company recently hired brokerage industry veteran Rich Hagen as part of the move, according to one of the sources. After leaving Ally Invest, Hagen is now the CEO of a previously unreported division of PayPal called Invest at PayPal, according to his LinkedIn page. Hagen was the co-founder of online brokerage TradeKing, which was bought by Ally Invest.
His current job description outlines PayPal’s efforts to "explore opportunities" in the consumer investment business. When reached for comment, PayPal pointed reporters to CEO Dan Schulman’s comments at the company’s investor day in February, when he spoke about the long-term vision for the company and how it may include many more financial services, including "investment capabilities."
PayPal’s move comes amid a retail trading renaissance. More than 10 million new individual investors have entered the market in the first half of this year, roughly matching last year’s record level, according to estimates from JMP Securities. A combination of stay-at-home orders during the pandemic, government stimulus checks and viral events like the rise of GameStop (NYSE:GMS) in January have spurred on new interest in the stock market.
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.
PYPL stocks gained 51 cents to $288.98.
