Stripe Considers Acquisition of PayPal's Business

The potential merger between PayPal and Stripe has sent shockwaves through the fintech industry, with both companies reportedly considering a deal that could see Stripe acquire all or parts of PayPal's business.

According to a report from Bloomberg, deliberations are in early stages, but if completed, the deal would marry two major payment firms with growing interest in stablecoins and crypto rails. Both companies have made significant investments in these areas in recent years, with PayPal launching its dollar-backed stablecoin PYUSD$1.0007 in 2022 and Stripe acquiring Bridge for $1.1 billion in 2024 to build tools for businesses and crypto projects to issue their own U.S. dollar-backed tokens.

The news sent PayPal shares rising by 7% on Tuesday, building on the company's already high momentum this week due to buyout chatter. If a deal were to be announced, it would mark a significant development in the fintech industry, bringing together two major players with a combined market value of over $250 billion.