#StripeConsidersAcquiringPayPalAssets

"Stripe Considers Acquiring PayPal Assets"

In a development that could fundamentally reshape the digital payments landscape, financial technology giant Stripe is reportedly considering the acquisition of all or parts of its pioneering rival, PayPal Holdings Inc. According to a Bloomberg report citing知情人士, the privately held Stripe has expressed preliminary interest in acquiring the digital payments pioneer or some of its key assets .

The news, which broke on February 24, 2026, sent PayPal shares surging nearly 7% in a single session, reflecting investor optimism that a potential deal could unlock value for the struggling company . However, both companies have declined to comment on the speculation, and sources emphasize that the discussions remain at a very early stage with no certainty that any transaction will ultimately materialize .

A Tale of Two Trajectories

The potential acquisition talks highlight the dramatically different paths these two payments giants have traveled. PayPal, founded in the late 1990s, was the original disrupter—the company that democratized online payments and became synonymous with digital commerce for an entire generation . But in recent years, the narrative has shifted. PayPal has struggled to modernize its payment technologies as deep-pocketed competitors like Apple Pay and Google Pay have eaten into its market share . The company's fourth-quarter 2025 results missed analyst expectations, with revenue coming in at $8.68 billion against forecasts of $8.8 billion, and payment volume growth continues to slow .

The struggles came to a head earlier this month when PayPal ousted CEO Alex Chriss, who had been brought in just two years prior to orchestrate a turnaround. The board determined that the "speed of transformation and execution" had fallen short of expectations . Former board chair Enrique Lores is set to take over as president and CEO on March 1, stepping into the role at a moment of maximum uncertainty .

Stripe tells a very different story. Founded by Irish brothers Patrick and John Collison, Stripe has become one of the most coveted players in financial technology . On the very same day the acquisition news broke, Stripe announced a secondary share sale that valued the company at a staggering $159 billion—a 74% increase from its $91.5 billion valuation just one year prior . The tender offer, backed by investors including Thrive Capital, Coatue, and Andreessen Horowitz, allows current and former employees to cash out while Stripe itself is using its own capital to repurchase shares .

Stripe's momentum is undeniable. The company reported that businesses using its payments suite processed $1.9 trillion in total volume last year, representing 34% growth. Its revenue suite—including billing, invoicing, and tax solutions—is on track to hit a $1 billion annual run rate .

The Crypto Connection

What makes this potential combination particularly intriguing is both companies' deep forays into cryptocurrency and stablecoins. Stripe has aggressively pivoted toward digital assets, acquiring stablecoin platform Bridge last year. That acquisition came with preliminary approval from the Office of the Comptroller of the Currency, positioning Stripe to potentially become a federally chartered bank .

PayPal, meanwhile, launched its own dollar-denominated stablecoin, PYUSD, in partnership with Paxos in 2023. With a current market capitalization of approximately $3.8 billion, PYUSD stands as the largest dollar stablecoin issued under US federal regulatory oversight . The company recently released survey data showing that nearly 85% of respondents expect cryptocurrency payments to become a normal part of daily life within five years, and it has announced plans to expand peer-to-peer payment functionality to include Bitcoin, Ethereum, and stablecoin transactions .

A combined entity would unite Stripe's modern infrastructure and crypto ambitions with PayPal's massive user base and established stablecoin product—creating a formidable force in both traditional and blockchain-based payments.

Market Math

The numbers tell the valuation story. PayPal currently trades at a market capitalization of approximately $43.3 billion, a fraction of its former glory and a stark contrast to Stripe's $159 billion private valuation . PayPal's stock has declined nearly 40% over the past year, reflecting persistent investor concerns about long-term growth prospects . In after-hours trading following the Bloomberg report, PayPal shares climbed as high as $47.02 .

Leadership in Transition

The timing adds another layer of complexity. Stripe president John Collison addressed PayPal's struggles in an interview this week, acknowledging that "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." When asked about acquisition speculation, he demurred: "I can't talk about any merger and acquisition hypotheticals" .

For PayPal, the leadership transition at the top creates both uncertainty and opportunity. Enrique Lores takes over March 1 with David Dorman assuming the role of board chair . Whether they inherit a company navigating an independent turnaround or one preparing for integration into a larger rival remains an open question.

What Comes Next

If Stripe were to move forward with an acquisition, the deal would represent one of the largest in fintech history—a changing of the guard where the upstart swallows the pioneer. But significant hurdles remain. Regulatory scrutiny would be intense, particularly given both companies' expanding roles in the global financial infrastructure and their cryptocurrency ambitions. Integration challenges would be monumental, combining Stripe's modern, developer-first architecture with PayPal's sprawling legacy systems.