Shares of PayPal Holdings Inc. Surged nearly 7% Tuesday after Bloomberg News reported that Stripe Inc. Is considering an acquisition of the digital payments pioneer, potentially in a deal exceeding $60 billion.
The report, citing people familiar with the matter, indicated that Stripe is evaluating whether to acquire all or parts of PayPal’s business. Deliberations are in early stages and there is no guarantee a transaction will occur, according to the sources. Representatives for both Stripe and PayPal declined to comment.
The potential acquisition comes as PayPal navigates a period of slowing growth and increased competition in the digital payments market. The company’s stock price has fallen significantly in recent months, shedding nearly a third of its value in 2025 alone, and was down more than 19% since the start of 2026 before Tuesday’s jump. Earlier this month, PayPal’s stock price declined following disappointing profit guidance and the appointment of Enrique Lores, formerly of HP, as its new CEO, effective March 1.
Stripe, a privately held payments processing firm, has experienced rapid growth and recently achieved a valuation of $159 billion following a secondary stock sale for employees and shareholders. The company processed $1.9 trillion in transactions last year and is on track to reach an annual run rate of $1 billion in revenue this year, according to reports. Stripe’s growing ambitions also include stablecoin and blockchain technologies, having acquired Bridge for $1.1 billion in 2024, a company focused on tokenization tools.
Both companies have been actively involved in the development of stablecoins. PayPal launched its dollar-backed stablecoin, PYUSD, in 2022, which currently has a market value of approximately $4 billion. Stripe is also developing Tempo, a payments-focused blockchain in collaboration with venture firm Paradigm.
The possibility of a deal has sparked debate among investors, with some questioning whether PayPal’s current valuation represents a buying opportunity. The news also follows reports of increased buyer interest in PayPal following its recent stock slump.
