PayPal is one of the world’s most popular financial services companies that offers online payment solutions to its users across the globe. The company aims to become the one-stop shop for all financial service needs, just like its competitors in the market Square and Robinhood.
According to recent reports, PayPal might venture into stock trading for its U.S. customers after recently rolling out cryptocurrency trading last year. The financial services company is exploring newer markets for growth and individual stock trading might be the next new feature.
As the global pandemic hits the financial markets, there has been no two seconds of sedimentation and PayPal’s latest exploration in launching a dedicated stock trading platform is comes at a time of ‘retail trading renaissance’, as noted in a report by CNBC. the report further mentions that there are about 10 million new individual investors in the market who are looking for a platform to begin stock trading and PayPal competitors are the ones reaping the most benefits in this new-found demand.
🚨PayPal is exploring a stock-trading platform for its U.S. customers
— Kate Rooney (@Kr00ney) August 30, 2021
Trading has been the new source of generating revenue for financial companies that offer the service and PayPal is exploring to venture into this market. As said earlier, all of these financial technology companies are aiming at one goal- to become the one-stop shop for all financial needs, rightly stated by CNBC.
Sources suggest that in order to carry out this new stock trading project, PayPal might have to acquire or partner with industry experts and it is actively rolling out discussions with potential industry leaders in this market.
As the news hits the financial markets, its volatility comes into play. PayPal shares jumped by more than 3 percent following the report by CNBC and according to reports, rival Robinhood’s market dropped down by 3 percent following the story.
The report by CNBC further suggests that PayPal might have to initiate a new membership process via FINRA, the industry’s main regulator, if in case it gets the approval to form a standalone stock market platform.
PayPal’s new venture might be good news for customers and it would definitely assist in their financial growth but this sudden boom in the financial services industry has called out for a more serious regulatory scrutiny. The watchdogs are on their toes to find suspicion in the acts of these financial technology firms, especially during times when cyberattacks are at their peak.
Nevertheless, even if PayPal is looking to launch its dedicated stock trading platform for U.S. customers, the service is not hitting the market until next year.