Payments firm Stripe is exploring a potential acquisition of all or parts of PayPal, according to a Bloomberg report. The move comes as both companies expand into stablecoins and blockchain technology. PayPal's shares rose 7% following the news.
Stripe, valued at $159 billion after processing $1.9 trillion in transactions last year, is in early-stage discussions about bidding for PayPal or portions of its business, Bloomberg reported. This potential deal would combine two leading payment processors, both of which have deepened involvement in cryptocurrencies.
PayPal introduced its dollar-backed stablecoin, PYUSD, in 2022 via issuer Paxos. The token, now with a market value of about $4 billion, enables users to transfer dollars over crypto networks around the clock, often cheaper than traditional bank wires. Stripe has similarly advanced in the space: in 2024, it acquired Bridge for $1.1 billion, a firm that develops tools for businesses and crypto projects to create their own U.S. dollar-backed tokens. Additionally, Stripe is collaborating with venture firm Paradigm on Tempo, a blockchain designed for payments that is currently in testing.
PayPal has faced challenges recently, with its stock declining approximately 80% from its 2021 peaks. Shares had already climbed earlier in the week on acquisition speculation and increased another 7% late Tuesday after the Stripe report emerged. The deliberations remain preliminary, and no final decisions have been announced.