Stripe, which processed $1.9 trillion in transactions last year and was recently valued at $159 billion, is considering acquiring all or part of PayPal (PYPL), according to a Bloomberg report.
Deliberations are in the early stages, the report continues.
If completed, the deal would bring together two major payments companies that have moved toward stablecoins.
PayPal launched its dollar-backed stablecoin in 2022 through the Paxos issuer. Since then, the token has grown to reach a market value of around $4 billion. It allows users to move dollars across crypto networks at any time of the day, often at a lower cost than bank transfers.
Stripe has also delved into cryptocurrencies. In 2024, it acquired Bridge for $1.1 billion, a company that creates tools for crypto companies and projects to issue their own US dollar-backed tokens. Stripe is also working with venture firm Paradigm to develop Tempo, a payments-focused blockchain that is now in testing.
PayPal has struggled mightily in recent years, with its stock falling about 80% from all-time highs reached in 2021. The stock was already up this week on acquisition rumors, and rose another 7% on Tuesday night in the wake of the Stripe report.
Read more: Stripe’s Bridge sees stablecoin volume quadrupling as utility isolates itself from ‘crypto winter’
