PayPal Explores a Stock Trading Platform in the U.S.

According to a CNBC report, fintech giant PayPal may about to enter a new territory.

The company is exploring a stock-trading platform for its U.S. customers.

PayPal is exploring ways to let users trade individual stocks, according to two sources familiar with the plan.

One of the sources has revealed that as part of the expansion, the company has hired a brokerage industry veteran to lead “Invest at PayPal” — a previously unreported division of the payments giant.

PayPal has hired brokerage industry veteran Rich Hagen as part of the move, according to one of the sources. Per his LinkedIn, after leaving Ally Invest, Hagen is now the CEO of a previously
unreported division of PayPal called Invest at PayPal.

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

LinkedIn say shis current job description outlines PayPal’s efforts to “explore opportunities” in the consumer investment business.

In order to offer stock trading to customers, it’s possible PayPal will partner with or buy an existing broker-dealer to make it happen. According to one source, PayPal has held already discussions with potential industry partners.

One source however has said that it was unlikely that the trading service would roll out this year. The sources spoke on condition of anonymity because PayPal’s plan was not public. The sources are not authorized to share information about possible partnerships.

If the company receives full approval as a brokerage firm alone, it would need to complete a new membership process through the industry’s main regulator, FINRA.

Shares of PayPal jumped more than 3% following the CNBC report.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.