Stripe is Considering Acquiring PayPal

Payment processor company Stripe is reportedly considering acquiring all or parts of its rival PayPal Holdings. According to a Bloomberg report on Tuesday citing sources close to the matter, Stripe is conducting early-stage talks and has shown preliminary interest, but there is no guarantee of a deal.

Stripe’s $159 Billion Valuation

Stripe announced on Tuesday that it has reached a $159 billion valuation through a tender offer to shareholders and employees; this represents a 74% increase from its valuation one year ago. Stripe President John Collison noted that PayPal has struggled in recent years and that the competitive landscape has changed. This valuation makes Stripe one of the most valuable players in the fintech sector.

PayPal’s Stock Performance and Competitive Challenges

PayPal stock (PYPL) rose 6.74% on Tuesday to close at $47.02, but it is down about 20% year-to-date and 85% from its 2021 peak. The company is also undergoing a CEO change; Enrique Lores will take office on March 1. PayPal is struggling in competition with embedded mobile payment systems like Apple Pay and Google Pay. This news gave the stock a short-term recovery signal.

PayPal shareholders have had a rough ride this year. Source: Google Finance

PayPal and Stripe’s Crypto Adventures

PayPal launched crypto trading including BTC in the US in 2020 and launched the PYUSD stablecoin in 2023; the market value of this asset exceeded $4 billion for the first time on February 14. PYUSD, as a USD-pegged stablecoin, provides stability in payments. Stripe is active in the crypto space with its Bridge stablecoin platform; it received national trust bank approval from the OCC on February 17 and began offering global stablecoin accounts in May 2025. These steps show that both companies are focusing on Web3 integration. Growth in the crypto market is supported by instruments like BTC futures.

Potential Merger’s Fintech and Crypto Impacts

The potential acquisition could reshape the payments sector. If Stripe’s Bridge platform merges with PayPal’s PYUSD, stablecoin competition will heat up. However, a deal is distant in early talks; market watchers are following developments. This process highlights the potential of crypto-friendly fintechs to transform traditional finance.