PayPal is interested in developing a stock trading platform, according to a report from CNBC That cites anonymous sources of the company. The move would make PayPal a direct competitor to Robinhood, a stock trading app that has helped create but growing retail investment. Verification-Selection from Securities and Exchange Commission.
CNBC reports that PayPal has recently hired the brokerage industry Rich Hagen in a new team, for a new division called Invest at PayPal – which is confirmed by Hagen. LinkedIn Page co-founded Hagen Trading, an automated investment platform that sold to Ally Invest for 5 275 million.
Hagen’s LinkedIn describes his job, “Leading PayPal’s efforts to explore consumer investment business opportunities.” At least 10 million Americans began trading the stock for the first time in the first half of this year, CNBC noted.
When reached for comment, PayPal pointed CNBC CEO Dan Schulmann to the company’s Investors Day in February, when he spoke about the long-term outlook for the company and how it could include many more financial services, including “investment power”.
This is clearly not a denial, but it does not give us the time frame of PayPal’s aspirations for retail investment. And in the months following SEC chief Gary Gensler’s remarks Monday, that spot could become much more murky in the next few weeks, with business models relying on Robinhood to express interest in cracking free stock trading apps.
Gensler said Baron A full-fledged legal practice on Wall Street called “paying for the flow of orders” is likely to be banned. Kickback For information. This practice is banned in the United Kingdom and Canada.
From a new report New York Times Monday:
Mr Gensler Baron’s said the practice was “an inherent conflict of interest” because the companies that run the business could benefit from that information.
“They get the data, they get the first look, they get buyers and sellers out of that order flow,” he said.
Over the past few months, Mr. Gensler has said in a series of statements that he is closely examining the practice and is open to a wide range of regulatory options. He instructed the agency to look into the matter as soon as it was confirmed; The review is still ongoing.
PayPal’s interest in allowing the average user to trade stocks seems very real, but obviously the SEC could throw a wrench at the company’s business model if PayPal wants to pay for the order flow. But it’s not the only way to make money in retail, it’s the most popular right now.