Shares in PayPal (NASDAQ:PYPL) are rising following the report that the Fintech is preparing to launch stock trading. PayPal already features crypto trading so a move towards traditional assets, alongside digital assets, may make a lot of sense to the global payments firm.
According to CNBC, PayPal has hired Rich Hagen who is now CEO of Invest at PayPal, according to a LinkedIn profile.
If PayPal enters the stock trading sector it will compete head-on with the likes of Robinhood or SoFi.
While best known for its digital payments platform, which includes Venmo, PayPal currently boasts over 400 million active customers and more than $1.1 trillion in payment volume in the past year completing 35,000 transactions every minute. This type of customer base is enormous and creates an incredible opportunity to provide more services to its already active users.
PayPal’s potential entry into investing highlights a sector theme of digital finance where customers are offered a one-stop-shop to complete all sorts of financial transactions without bouncing from app to app. PayPal could acquire a broker-dealer to facilitate its investment platform allowing it to compete with both digital-first Fintechs and more traditional brokerages like ETrade or Schwab.