Stripe is reportedly exploring an acquisition of all or parts of rival PayPal, with Bloomberg citing sources familiar with early-stage discussions and cautioning that no deal is guaranteed.
Stripe, recently valued at $159 billion in a tender offer, has expressed preliminary interest as PayPal grapples with intensifying competition from smartphone-embedded services such as Apple Pay and Google Pay.
“PayPal has had, obviously, a tough time over the past few years, and the landscape has changed quite a bit with Apple Pay and Google Pay and everything like that,”
Said Stripe president, John Collison.
“I can’t talk about any, you know, M&A hypotheticals, but they’ve definitely had a tough time,”
He added.
PayPal shares rose 6.74% to $47.02 on Tuesday, though the stock remains down nearly 20% this year and about 85% below its 2021 peak above $300, amid leadership transition and slowing payment volumes.
Both companies have expanded into digital assets, with PayPal launching its PYUSD stablecoin in 2023 and Stripe developing its own stablecoin infrastructure through Bridge, which recently received conditional approval for a national trust bank charter, positioning any potential merger as a significant force in the stablecoin market.