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), Bloomberg reports.
Deliberations are at an early stage, the report continued.
Once completed, the deal will bring together two major payment companies that have both transitioned to stablecoins.
PayPal launches dollar-backed stablecoin PYUSD$1.0007 in 2022 through the publishing company Paxos. Since then, the token has grown to a market value of approximately $4 billion. This allows users to move dollars through cryptocurrency networks at any time, often at lower costs than bank transfers.
Stripe is also moving deeper into cryptocurrencies. In 2024, the company acquired Bridge, a company that builds tools for companies and crypto projects to issue their own USD-denominated tokens, for $1.1 billion. Stripe is also working with venture firm Paradigm to develop Tempo, a payments-focused blockchain currently in testing.
PayPal has struggled mightily in recent years, with its stock price down about 80% from its all-time high in 2021. Shares had already risen this week on deal talk, and rose another 7% late Tuesday after the Stripe report.
Read more: Stripe Bridge sees stablecoin volumes quadrupling as utilities protect against ‘crypto winter’
