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Bloomberg has disclosed that Stripe, which is expanding its interests in stablecoins and blockchain, is considering a potential acquisition of the troubled fintech company PayPal.
PayPal logo on iphone screen (Marques Thomas/Unsplash)
Key points:
- According to Bloomberg, Stripe is contemplating a proposal for all or portions of PayPal’s operations.
- A potential agreement would combine two payment processing entities with increasing focus on stablecoins and cryptocurrency infrastructure.
- PYPL shares had already seen an increase this week due to acquisition speculation and rose another 7% following the Stripe news.
As reported by Bloomberg, Stripe, which facilitated $1.9 trillion in transactions last year and has a recent valuation of $159 billion, is assessing an acquisition of all or segments of PayPal (PYPL).
The discussions are reportedly in the preliminary phases.
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If the deal goes through, it would unite two prominent payment companies that have both ventured into stablecoins.
In 2022, PayPal introduced its dollar-pegged stablecoin in collaboration with Paxos. The token has since achieved a market capitalization of approximately $4 billion, permitting users to transfer dollars across crypto networks at any time, often at a reduced cost compared to traditional bank transfers.
Stripe has also intensified its involvement in the cryptocurrency sector. In 2024, it purchased Bridge for $1.1 billion, a firm that creates tools for businesses and cryptocurrency initiatives to generate their own U.S. dollar-pegged tokens. Additionally, Stripe is collaborating with venture capital firm Paradigm to establish Tempo, a payments-focused blockchain currently undergoing testing.
PayPal has faced significant challenges in recent years, with its stock declining nearly 80% from its peak in 2021. Shares had already increased this week due to acquisition rumors, and they rose another 7% late Tuesday following the Stripe announcement.
Read more: Stripe’s Bridge sees stablecoin volume quadruple as utility insulates from ‘crypto winter’
