(CNBC) Shares of payment giant PayPal Holdings rose more than 3% after reports it plans to introduce a stock-trading platform for its US customers.
PayPal is expected to partner or acquire an existing broker to kick off stock trading service, with the company having already held preliminary talks with potential partners.
It is not clear when PayPal will start offering stock trading services, with the idea seen unlikely within this year.
PayPal’s move happens at a time retail trading is gaining popularity, with at least 10 million new investors entering the market in the first half of this year,
Viral events such as GameStop’s retail frenzy, stay-at-home orders during the pandemic, and higher disposable incomes due to government stimulus are seen to boost retail trading.
Stock and crypto trading are viewed by payment giants as ways to keep customers engaged on the platforms, with the retail frenzy also facing heightened regulatory scrutiny.
PYPL: NASDAQ is up +0.60% on premarket.
