PayPal Is Exploring a Stock-Trading Platform For US Customers (cnbc.com) 17
PayPal is exploring a possible stock-trading platform, after rolling out the ability to trade cryptocurrencies last year. CNBC reports: The San Jose, California-based company recently hired brokerage industry veteran Rich Hagen as part of the move, according to one of the sources. After leaving Ally Invest, Hagen is now the CEO of a previously unreported division of PayPal called Invest at PayPal, according to his LinkedIn page. Hagen was the co-founder of online brokerage TradeKing, which was bought by Ally Invest. His current job description outlines PayPal's efforts to "explore opportunities" in the consumer investment business. When reached for comment, PayPal pointed CNBC to CEO Dan Schulman's comments at the company's investor day in February, when he spoke about the long-term vision for the company and how it may include many more financial services, including "investment capabilities."
In order to offer stock trading to customers, it's possible PayPal will partner with or buy an existing broker-dealer. According to one source, PayPal has held already discussions with potential industry partners. Still, one source familiar with the idea said it was unlikely that the trading service would roll out this year. If PayPal did look to get full approval as a brokerage firm alone, it would need to complete a new membership process through the industry's main regulator, FINRA. That process could take more than eight months. PayPal has more than 400 million accounts worldwide.
In order to offer stock trading to customers, it's possible PayPal will partner with or buy an existing broker-dealer. According to one source, PayPal has held already discussions with potential industry partners. Still, one source familiar with the idea said it was unlikely that the trading service would roll out this year. If PayPal did look to get full approval as a brokerage firm alone, it would need to complete a new membership process through the industry's main regulator, FINRA. That process could take more than eight months. PayPal has more than 400 million accounts worldwide.
Sorry, no sale. (Score:4, Insightful)
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Buy and sell stocks with PayPal, and watch them freeze your account for months, without explanation. Not just no, but hell no.
I absolutely agree. But PooPal is still raking in money hand over fist, which means there are a LOT of folks that continue to risk their money with those crooks. So it's likely that a lot of people will sign on with PP as their stock broker too, in spite of the company's awful track record. What a world, where people will stand in line to hand over their money in order to be shat upon.
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> Buy and sell stocks with PayPal, and watch them freeze your account for months, without explanation. Not just no, but hell no.
Maybe they're being funded by Robinhood to... make them look better.
and then the FTC will be on there ass like robnhoo (Score:2)
and then the FTC will be on there ass like robinhood
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How many times has PayPal been hacked and its customer database has shown up for sale online? Four? Five? I feel sorry for whoever is gullible enough to dump their retirement investments there.
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fo shizzle mah nizzle pimp mah paypal !!
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How PayPal steals money (Score:5, Interesting)
Last fall, early on a Sunday morning, someone I'd never heard of sent me about $100 on PayPal. I wasn't paying attention to my email that morning as the guy blew up my inbox with requests for me to refund his money because he'd sent it to the wrong person. He finally resorted to filing a claim with PayPal. Now, you have to have a reason to file a claim, but PayPal only lets you choose a reason from their list of pre-prepared reasons. "I sent money to the wrong person" is not one of them. So this guy chose "The item never arrived."
So later, I'm finally checking my email, and there's about 20 messages from the guy, and then there's a claim email. Now they want me to refund this guy, and they want me to reimburse him for the PayPal fees they took out when they transferred the money. I'm happy to give this guy's money back, but I'm not going to pay the fees he incurred for not double-checking who he was sending it to. So I dispute the claim. But PayPal basically only has one option for disputing "The item never arrived." I have to provide tracking information for "the item." Which, of course, I can't do, because there was never an item to begin with. So I fill out the form and explain that I'll refund the money I got, but I'm not inclined to pay the guy's fees, and I explain that I can't provide tracking information for the item because it never existed.
My claim was denied on the grounds that I hadn't provided tracking information for "the item," and I was charged an additional $20 fee for disputing the claim. They give me the option to appeal the decision. So I do. I appeal, and I explain very clearly that there is no item, I've never heard of this guy, he's abusing the dispute process by implying that we have some kind of business relationship, etc., etc. They denied my appeal because I didn't provide tracking information for "the item."
So I got on with customer support and complained about this situation until they offered me an account credit that covered all of my costs in this stupidity. (Although the credit wasn't really equivalent to the money they took, since it had a six month expiration date.) I found something on eBay to buy with the credit and then cancelled my PayPal account.
I searched on line, and I've found people complaining to the CFPB about exactly this situation, but with way more money. A woman was sent something like $5,000 on PayPal accidentally, then the sender filed a claim, and PayPal refunded the money, but stole the transfer fees from the accidental recipient. That's about $150. They refused to do anything about her case because they claimed they'd already exhausted their dispute process.
So, if you want to cause PayPal to steal money from a person, just transfer them a few thousand dollars and then file a claim. PayPal will side with you and refund your money, and they'll steal the transfer fees from your victim.
Obviously, I would not recommend their brokerage service.
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I still wonder why the hell aren't the regulated like a bank or a brokerage? After all, they act like one...
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This is more cut-and-dry. The chief problem with trading now is money laundering (which supports and emboldens illegal industries) . . . and even with systems and governments that are "serious" about it, you get the case like HSBC knowingly launder
Dang, no bang (Score:2)
I initially read the headline as "exploding".
Gee, I wish it had said that! Because I really do hope that Paypal Trading implodes on itself and doesn't see the light of day.
Ally Invest is not something to emulate (Score:1)
Well if Ally Invest is what they are aiming for, the service will suck big time. Ally Invest was so slow as to be completely unusable. Slow even at 3am just checking account balances.