American payments giant PayPal is reportedly exploring ways to offer stock trading after launching cryptocurrency trading services concluding year.

PayPal is looking to purchase or partner with a broker-dealer to introduce its own stock trading service to compete with rivals such every bit crypto-friendly stock trading app Robinhood, CNBC reported on Monday.

Citing bearding sources, the report notes that PayPal has conducted relevant discussions with potential manufacture players merely is unlikely to launch the new investment service this twelvemonth. According to CNBC, PayPal's potential approval as a brokerage house by the Financial Industry Regulatory Authority could accept more than viii months.

Every bit role of the alleged program, PayPal has already hired brokerage industry veteran Rich Hagen as the new CEO for its previously undisclosed sectionalization known as "Invest at PayPal." Co-ordinate to Hagen'southward LinkedIn page, the executive will be responsible for PayPal's "efforts to explore opportunities in the consumer investment business."

Hagen is a co-founder and erstwhile president of Ally Invest, a regulated brokerage business concern that acquired online brokerage business firm TradeKing in 2022. The new PayPal executive was also the president of TradeKing, which he co-founded back in 2005.

Related: PayPal launches crypto services for Great britain customers

PayPal representatives reportedly said that the company's potential plan to innovate a stock trading service comes in line with CEO Dan Schulman's long-term vision to comprehend many more financial services, including "investment capabilities." The CEO previously disclosed PayPal'due south product visions at the company's investor day in February.

Following the news, PayPal shares surged iii.6%, while Robinhood'south HOOD stock tumbled more than 6%, co-ordinate to data from TradingView. Earlier in August, Robinhood said that cryptocurrency trading saw a significant surge in popularity on the platform this year, making up 41% of its revenue during Q2 2022.