PayPal jumps 7% on potential Stripe acquisition report

PayPal’s stock rose nearly 7% on February 24 amid reports that fintech startup Stripe is considering acquiring parts or all of PayPal’s business.

Bloomberg cited sources familiar with the matter, saying that discussions are in early stages.

The report follows recent investor interest in PayPal, which has seen its share price drop over 19% this year and lost about a third of its value in 2025. PayPal and Stripe declined to comment on the speculation.

Stripe, which recently reached a valuation of US$159 billion after a secondary stock sale, reported an annual revenue run rate of US$1 billion for 2026.

The company, which is not planning an IPO in the near term, has expanded through acquisitions, including billing startup Metronome in January.

PayPal has faced challenges from increased competition and slowing growth in the digital payments space.

🔗 Source: CNBC

🧠 Food for thought

Implications, context, and why it matters.

PayPal is less appealing as a whole, its parts draw the interest

Talk of a deal tracks a sharp split in value, Stripe’s private valuation reached $159 billion while PayPal’s market cap sits near $41 billion 1.
PayPal looks exposed after shares fell more than 85% from the 2021 peak, pressured by tough competition plus what management called execution issues in the core branded checkout business 2, 3.
Some analysts see a full buyout as unlikely and expect a targeted bid for select PayPal assets, often called “waterfront properties” (highly attractive businesses within a larger company) 1.
Braintree stands out, a payment processor (a business that helps merchants accept and route card and online payments) valued at $10 billion to $15 billion, which analysts have said could fit Stripe 1.

A deal could speed up stablecoin use in everyday payments

A combined company could push regulated digital currencies further into mainstream commerce.
Stripe has leaned into stablecoins, with stablecoin payment volume on its platform doubling to $400 billion in 2025, plus work on its own blockchain called Tempo 4.
PayPal brings PYUSD, a stablecoin that has grown to a market value of about $4 billion 5.
Stripe’s infrastructure paired with PayPal’s user base could carry weight in the category, especially after U.S. laws brought regulatory clarity for stablecoins 4.