Key Takeaways
- Bloomberg reports Stripe has entered preliminary discussions to purchase PayPal or select divisions
- Shares of PayPal (PYPL) jumped approximately 7% following the report, though remain 85% below 2021 highs
- Stripe’s valuation reached $159 billion recently, representing a 74% year-over-year increase
- Both payment processors maintain stablecoin initiatives — PayPal operates PYUSD (~$4B market cap), while Stripe owns Bridge
- Discussions remain preliminary with no confirmed transaction
According to a February 24, 2026 Bloomberg report, Stripe has initiated exploratory discussions regarding a potential acquisition of PayPal, either in full or partially. Sources indicate these conversations are in very early phases with no certainty of completion.
Last year, Stripe facilitated $1.9 trillion in payment volume. A recent tender offer valued the private company at $159 billion, marking a substantial 74% valuation increase compared to the previous year.
Meanwhile, PayPal has experienced significant challenges. The company’s share price has plummeted approximately 85% from its 2021 peak of over $300.
PayPal’s stock (PYPL) had already been climbing earlier in the week due to unrelated acquisition speculation. Tuesday saw an additional 6.74% gain, with shares settling at $47.02.
Despite this uptick, PYPL has declined nearly 20% year-to-date in 2026. The stock continues struggling to recover from sustained competitive pressures.
PayPal has encountered intensifying rivalry from Apple Pay and Google Pay, services that come pre-integrated into millions of smartphones. Stripe president John Collison publicly recognized that PayPal has experienced difficulties as digital payments evolve.
Management Transition Amid Performance Challenges
PayPal is simultaneously navigating executive turnover. Incoming CEO Enrique Lores assumes control on March 1, replacing Alex Chriss who was recently ousted. This leadership shake-up follows disappointing earnings reports and declining transaction growth.
Both organizations have been actively pursuing cryptocurrency and stablecoin strategies. PayPal introduced PYUSD, its dollar-pegged stablecoin, in 2023 via issuer Paxos. The token’s market capitalization surpassed $4 billion for the first time on February 14, 2026.
PYUSD enables users to transfer dollars across blockchain networks instantly, typically at significantly reduced costs compared to conventional wire transfers. The stablecoin has gained substantial momentum recently.
Stripe has similarly invested in cryptocurrency infrastructure. The company purchased Bridge in 2024 for $1.1 billion. Bridge provides technology enabling businesses and crypto ventures to create proprietary dollar-backed tokens.
Stripe’s Blockchain Strategy Advances
On February 17, 2026, Stripe’s Bridge platform secured conditional authorization to function as a federally chartered national trust bank through the US Office of the Comptroller of the Currency.
Stripe introduced global stablecoin-based accounts in May 2025. Additionally, the company partners with venture capital firm Paradigm on Tempo, a blockchain optimized for payments that’s currently undergoing testing.
Should this transaction materialize, the resulting entity would control dual stablecoin ecosystems alongside extensive payment processing capabilities. Collison avoided commenting specifically on potential merger activity.
PayPal launched cryptocurrency trading features for US customers in 2020, providing substantial experience in digital assets. A combined organization would unite that established user base with Stripe’s developer-centric payment infrastructure.
As of Tuesday’s market close, PYPL was trading at $47.02. Stripe maintains its private company status.
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