Stripe, valued at $159B, eyes acquisition of struggling PayPal
What's the deal? Stripe is considering acquiring all or parts of PayPal, BloombergDealroom has a profile for this one. Try Dealroom → reported on February 24, 2026, citing people familiar with the matter. The deliberations are early and no deal is certain. Representatives for both companies declined to comment.
The news broke on the same day Stripe announced a $159 billion valuation — up 74% from a year ago — through an employee tender offer. PayPal's market capitalisation stood at roughly $43 billion, down 85% from its 2021 peak of over $300 per share.
Why now? PayPal has been losing ground for years. Apple Pay and Google Pay have eaten into its consumer market share, while its last set of quarterly results missed analysts' estimates on both profit and revenue, with payment volumes slowing. The company is also in leadership transition: incoming chief executive officer Enrique LoresDealroom has a profile for this one. Try Dealroom → takes over on March 1, replacing Alex ChrissDealroom has a profile for this one. Try Dealroom →, who was ousted earlier this month.
For Stripe, the timing is opportunistic. A gap of more than $115 billion in valuation between the two companies makes an all-cash deal unlikely, but a partial acquisition — of assets, technology, or specific business lines — could be more feasible. Stripe's president John CollisonDealroom has a profile for this one. Try Dealroom → acknowledged PayPal's struggles without confirming any interest in a deal.
What could go wrong? The talks are at a very early stage, and Bloomberg's sources offered no detail on structure, price, or timeline. A full acquisition would be extraordinarily complex — PayPal operates across more than 200 markets and carries significant regulatory obligations in each. Stripe, still privately held, would face substantial financing and integration challenges.
A partial acquisition raises different questions: which assets, at what price, and whether they would meaningfully strengthen Stripe's position. PayPal's stablecoin PYUSD, with a market capitalisation above $4 billion, and its merchant network could be attractive — but separating them from the broader business is easier said than done.
The signal: This story reflects the fragility of first-mover advantage in fintech. PayPal was one of the defining companies of the early internet era; today it is valued at less than a third of Stripe, a company that did not exist until 2010. The potential interest from Stripe signals that established payment infrastructure — merchant relationships, global rails, regulatory licences — still has real value, even when the brand and growth story have faded.
Both companies also have serious stablecoin ambitions, and a combination could create a significant player in that emerging market. Whether or not a deal happens, the dynamic between the two says a great deal about how quickly the payments landscape has shifted.
Sources:
Bloomberg
Trading View
Reuters
Financial Post
A.M.
