Key Takeaways
- Bloomberg reports Stripe exploring potential acquisition of PayPal or specific business units
- PYPL shares jumped approximately 7% following acquisition reports, though still 85% below 2021 highs
- Stripe’s valuation recently hit $159 billion, representing a 74% year-over-year increase
- Each company operates stablecoin businesses — PayPal’s PYUSD (~$4B market cap) and Stripe’s Bridge acquisition
- Discussions remain preliminary with no confirmed agreement
A February 24, 2026 Bloomberg report reveals that Stripe is exploring the possibility of acquiring PayPal, either in full or through a partial transaction. Sources indicate these discussions are in preliminary stages with no certainty of completion.
Last year, Stripe facilitated $1.9 trillion in payment volume. A recent tender offer accessible to shareholders and employees this week established the company’s valuation at $159 billion, marking a 74% jump compared to the previous year.
PayPal’s recent performance has been challenging. The stock has plummeted approximately 85% from its 2021 all-time high, which exceeded $300 per share.
PYPL shares had already gained momentum earlier in the week due to unrelated acquisition speculation. Tuesday saw an additional 6.74% increase, with shares settling at $47.02.
However, PYPL remains down nearly 20% year-to-date in 2026. Years of competitive pressure have prevented meaningful stock recovery.
PayPal has struggled against intensifying competition from Apple Pay and Google Pay, which benefit from native integration into consumer devices. Stripe president John Collison has publicly recognized that PayPal has experienced “a tough time” amid evolving payment sector dynamics.
Management Transition Amid Performance Challenges
PayPal is navigating a significant leadership overhaul. Incoming CEO Enrique Lores assumes control on March 1, replacing Alex Chriss who was recently ousted. This executive shake-up follows disappointing earnings reports and declining transaction volumes.
Both payment giants have made strategic moves into cryptocurrency and stablecoin infrastructure. Through issuer Paxos, PayPal introduced its dollar-backed stablecoin PYUSD in 2023. On February 14, 2026, PYUSD’s market capitalization surpassed $4 billion for the first time.
PYUSD enables users to transfer dollar-denominated value across blockchain networks around the clock, typically with lower fees than conventional banking transfers. Adoption has accelerated in recent months.
Stripe has similarly prioritized crypto infrastructure development. The company’s 2024 acquisition of Bridge for $1.1 billion brought technology enabling businesses and crypto ventures to create proprietary dollar-backed tokens.
Expanding Blockchain Infrastructure
On February 17, 2026, Stripe’s Bridge platform secured conditional approval from the US Office of the Comptroller of the Currency to function as a federally chartered national trust bank.
Stripe launched global stablecoin-based accounts in May 2025. Additionally, the company collaborates with venture firm Paradigm on Tempo, a blockchain designed specifically for payments applications currently undergoing testing.
A successful merger would unite two distinct stablecoin platforms with extensive payment processing capabilities. Collison has refrained from commenting on potential acquisition activity.
PayPal introduced crypto trading functionality to US customers in 2020, establishing years of operational experience. A combined organization would integrate that established user base with Stripe’s developer-centric payment ecosystem.
As of Tuesday’s market close, PYPL traded at $47.02. Stripe continues operating as a private company.
