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PayPal may be developing platform to trade shares

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Paypal, one of the leading payment companies, intends to launch a stock trading platform for its US resident customers.

The company, which recently launched a cryptocurrency service in the UK, is considering ways to allow its US clients to trade individual shares, CNBC reported citing some sources that are in contact with development teams.

One of the sources announced that the US-based company recently invited financial markets industry “guru” Rich Hagen to this project. Hagen is currently the CEO of Invest at PayPal, a previously undisclosed division of the company.

This latest plan by the payments giant comes at a time when the equity markets have been gaining prominence and attention, with the number of new individual investors reaching more than 10 million in the first half of this year, a very expressive number when compared to previous years, and only comparable to last year, when it hit a record, according to JMP Securities.

The company has been in contact with potential industry partners with a view to becoming a stock trading platform. Paypal thus enters a market in which Square, its direct competitor, was already. Square offers a platform for trading shares and cryptocurrencies through the Square Cash App, and its CFO said the application drives the company’s revenue.

In order to become a stock trading platform, it is possible for PayPal to partner or buy an existing brokerage. International press reports that PayPal is in talks with potential industry partners.

The international press also mentions that it is unlikely that the trading service will be launched this year.

PayPal posted net revenue growth of 19% year-on-year in the second quarter of 2021, benefiting from the increase in online purchases driven primarily by the pandemic climate.

Source: CNCB

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