Stripe weighs PayPal acquisition as PayPal shares jump 7%

Stripe is considering an acquisition of all or parts of PayPal, according to a new Bloomberg report, adding fresh momentum to takeover speculation around the embattled payments giant.

The discussions are described as preliminary, and there is no certainty a transaction will materialize.

The report comes hours after Stripe released its annual letter, announcing that it reached a $159 billion valuation in a recent employee tender offer. The company also disclosed $1.9 trillion in total payment volume for 2025 and highlighted accelerating growth across enterprise clients, stablecoin activity, and AI-driven commerce tools.

Earlier this week, Bloomberg separately reported that PayPal was attracting takeover interest following a prolonged stock slump and slowing payment growth. PayPal shares jumped nearly 12% on Monday before cooling, then rose again after news of Stripe’s interest, finishing Tuesday up nearly 7%.

Founded in the late 1990s, PayPal was an early mover in digital payments but has struggled to modernize its technology stack as competitors such as Apple and Alphabet expanded their payments offerings. The company’s latest quarterly results missed analyst expectations, with profit and revenue both falling short and payment volume growth continuing to slow.

Stripe, founded by Patrick and John Collison, has positioned itself as one of the most valuable private fintech firms globally. In a recent interview, Stripe President John Collison acknowledged PayPal’s challenges but declined to comment on potential acquisition scenarios, saying he could not discuss M and A hypotheticals.

PayPal is also undergoing leadership changes. Enrique Lores is set to become president and chief executive officer on March 1, replacing Alex Chriss, who was removed from the role this month.