Shares of the American payment company PayPal surged significantly following reports of a potential deal with competitor Stripe. According to reports, Stripe is considering acquiring a stake in PayPal or even fully absorbing the company.
This is reported by Finway
Possible Merger of Two Payment Market Leaders
Sources indicate that negotiations between Stripe and PayPal are in the early stages, and no final decision regarding the deal has been made yet. If an agreement is reached, the merger of these two significant players in the payment industry could dramatically alter the balance of power in the market. Both companies are actively developing their cryptocurrency and fintech innovation sectors.
In light of this news, PayPal’s shares rose nearly 7%—within a day, the stock gained 6.74%. However, the share price still remains below the closing level of February 20, 2026.
Stripe Strengthens Its Position in the Fintech Sector
Recently, Stripe announced a tender offer for its own shares, revealing that the company processes transactions totaling $1.9 trillion, with a valuation of $159 billion. In comparison, PayPal’s current market capitalization stands at $64.1 billion.
Stripe President John Collison noted in an interview that PayPal is facing significant challenges due to competition from new market players:
“PayPal is clearly going through tough times over the past few years, and the situation has significantly changed with the emergence of Apple Pay, Google Pay, and similar services. I can’t speak about any hypothetical merger and acquisition scenarios, but they have certainly had a hard time.”
It is worth noting that both companies are actively involved in the cryptocurrency sector. For instance, PayPal launched its own stablecoin PYUSD in August 2024. Stripe, on the other hand, has added stablecoin accounts and the ability to pay subscriptions with these assets, as well as acquired two crypto startups—Bridge and Privy—demonstrating its ambitions in this direction.