Stripe is investigating buying all or a portion of PayPal, according to Bloomberg. The negotiations are still in their early stages, and a deal is not guaranteed.
How Far the Stripe–PayPal Talks Have Progressed
According to a Bloomberg report, privately held Stripe has indicated interest in acquiring PayPal Holdings or specific business units, including its payment infrastructure and merchant services. Stripe has not submitted a formal bid, according to the sources, but is considering options such as a complete buyout or a partial asset purchase.
Following the first rumor that unnamed competitors had indicated interest in an acquisition, PayPal’s shares continued their upward trajectory on Tuesday, rising between 6 and 7%. With a market cap of $40-$45 billion, PayPal has experienced an 80%+ decline from its 2021 peak, making it a more affordable target for larger payment providers.
Meanwhile, investors valued Stripe at over $159 billion in a recent tender offer, more than 70% above the previous year’s valuation. Stripe’s value and the backing of investors like Andreessen Horowitz and Thrive Capital have given it the financial power to consider a significant acquisition.
Why Stripe Might Want Parts or All of PayPal
Stripe today dominates developer‑focused online payment processing and handles trillions of dollars in annual payment volume. PayPal, by contrast, has strong consumer brands, including its core wallet and Venmo, as well as the Braintree merchant platform.
A deal could give Stripe instant access to more than 400 million consumer accounts and a major peer‑to‑peer app it currently lacks. Bringing Braintree’s estimated hundreds of billions in payment volume under Stripe’s umbrella could also expand its merchant footprint and sharpen its competition with Adyen and traditional processors.
At the same time, PayPal has struggled with slowing growth, margin pressure, and a sharp stock slide, and recently named HP’s Enrique Lores as its incoming CEO. Takeover interest from Stripe and other firms comes as PayPal’s board reviews options that include asset sales, a breakup, or an outright acquisition.
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