Reports have claimed that PayPal inquired about acquiring some broker-dealer network to compete with Robinhood. But the company is not in hurry to launch any new investment service by the end of this year. PayPal and American payment services giant are now identifying new paths to offer stock trading after the company successfully launched crypto payments services last year.
PayPal currently is exploring the market to form strategic ties with broker-dealer to launch its stock trading services. The goal here is to rival crypto-friendly stock trading app Robinhood. Multiple resources have confirmed that PayPal has finalized a couple of entities and final talks about the joint venture will begin soon. However, PayPal will not launch any new payment service by the end of this year. PayPal is already working on launching crypto payment services for a couple of corporate tycoons. But PayPal has no plans to launch a self-owned payment service in this financial year.
One of the world’s renowned sources CNBC has claimed that Financial Industry Regulatory Authority might take more than eight months to recognize PayPal as a crypto brokerage firm. PayPal has already hired Rich Hagen, a veteran brokerage industry expert as the CEO of its division entitled “Invest at Paypal’s.” The newly hired CEO will conduct detailed research and identify the investment opportunities for the firm, especially in the consumer investment business.
Hagen previously co-founded Ally Invest and also served as the President of the same company. Ally Invest is an authorized brokerage company, the company hired brokerage firm TradeKing back in 2016. PayPal’s plan to launch the crypto stock trading services is the part of company’s long-term sustainability plan. PayPal’s long-term vision is to establish itself as an investment hub in the traditional payment sector, as well as in the crypto market as well.
As of this writing, the market has reacted pretty proactively to the news that PayPal is moving in to put pressure on Robinhood. As a result, PayPal’s market share price has surged 3.6%. As compared to this Robinhood’s hare went down by 6%. Earlier in the month of August Robinhood’s official statement said that the platform’s crypto trading activity has risen significantly during the second quarter of the financial year 2021. One of the biggest reasons that Robinhood’s market share value went down is that PayPal has pretty strong goodwill and is one of the world’s most secured payment methods. PayPal effectively develops strategic ties with some of the market’s big players. It would make it difficult for Robinhood to perform freely in the market. But this is an encouraging sign for the crypto community that PayPal is officially entering the crypto world.