Is Stripe About to Buy PayPal? What Investors Need to Know

TLDR

• Stripe is in early talks to acquire all or parts of PayPal, per Bloomberg
• PayPal stock (PYPL) rose ~7% on the news but is still down 85% from its 2021 peak
• Stripe was recently valued at $159 billion, a 74% jump year-over-year
• Both companies have stablecoin operations — PayPal has PYUSD (~$4B market cap), Stripe owns Bridge
• No deal is confirmed; talks are at a preliminary stage

Stripe is reportedly considering a bid to acquire all or parts of PayPal, according to a Bloomberg report published February 24, 2026. The talks are described as early-stage, and no deal is guaranteed.

Stripe processed $1.9 trillion in transactions last year. The company was valued at $159 billion this week through a tender offer to shareholders and employees, a 74% increase from a year ago.

PayPal has had a difficult few years. Its stock is down roughly 85% from its all-time high of just over $300 reached in 2021.

PayPal Holdings, Inc., PYPL

Shares of PayPal (PYPL) were already rising earlier this week on separate buyout rumors. They climbed another 6.74% on Tuesday, closing at $47.02.

Despite that gain, PYPL is down nearly 20% since the start of 2026. The stock has not recovered from years of pressure from competitors.

PayPal has faced growing competition from Apple Pay and Google Pay, both embedded directly into consumer smartphones. Stripe president John Collison acknowledged PayPal has had “a tough time” as the payments landscape has changed.

Leadership and Earnings Pressure

PayPal is also going through a leadership change. New CEO Enrique Lores is set to take over on March 1, following the removal of Alex Chriss. The transition comes after missed earnings estimates and slowing payment volumes.

Both companies have been expanding into crypto and stablecoins. PayPal launched its dollar-pegged stablecoin PYUSD in 2023 through issuer Paxos. Its market cap crossed $4 billion for the first time on February 14, 2026.

PYUSD lets users move dollars across crypto networks at any time, often at lower cost than traditional bank wires. The stablecoin has seen growing traction in recent months.

Stripe has also been building its crypto presence. In 2024, it acquired Bridge for $1.1 billion. Bridge builds tools for businesses and crypto projects to issue their own dollar-backed tokens.

Stripe’s Crypto Ambitions

Stripe’s Bridge platform received conditional approval on February 17, 2026 to operate as a federally chartered national trust bank under the US Office of the Comptroller of the Currency.

Stripe first offered stablecoin-based accounts globally in May 2025. The company is also working with venture firm Paradigm to develop Tempo, a payments-focused blockchain currently in testing.

If a deal were completed, the combined company would hold two stablecoin platforms and significant payment infrastructure. Collison declined to comment directly on any M&A plans.

PayPal began offering crypto trading in the US in 2020, giving it several years of experience in the space. A merged entity would combine that user base with Stripe’s developer-focused payments network.

As of Tuesday’s close, PYPL trades at $47.02. Stripe remains privately held.

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