![]() ![]() PayPal is a well-known brand that handles 22% of all online transactions in the United States and has a high degree of consumer trust. And this is a major milestone in the evolution of the PayPal ecosystem. Meanwhile, Square, Inc., PayPal’s main competitor in the payment processing sector, has already incorporated features to its Cash App payment service that make it easier to trade equities and cryptocurrencies. has grown to over 22.5 million net accounts by the conclusion of the second quarter of the 2021 fiscal year, an increase of 129.6% year over year. “ PayPal wants to ride this wave while also keeping up with the competition. “ The surge in retail investing, as well as the knowledge that more than 10 million new investors entered the market in the first half of 2021, are driving PayPal’s interest in this industry,” explains Maxim Manturov, head of investment research at Freedom Finance Europe. So far, 2021 appears to be telling a similar story in terms of mass retail investor growth around the world, and experts believe that PayPal is eager to tap into this rise in adoption. While the pandemic may have aided new customers in making their first trades through stimulus packages and the free time afforded by social isolation measures, it’s also worth noting that brokerages have become far more popular since adopting zero-commission payment for order flow operating models. Image by NasdaqĪs the chart above shows, PayPal’s potential foray into the world of retail investing may have been sparked by significant growth in the user base of online brokerages throughout 2020. The company has even hired brokerage industry veteran Rich Hagen as part of the move – who has reportedly become CEO of a previously unreported division of PayPal called Invest at PayPal. This marks a considerable inroad towards retail investment, having rolled out the ability for customers to trade cryptocurrencies last year. ![]() In August, news broke that PayPal was exploring the possibility of creating a stock trading platform. ![]()
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