Is the payment landscape preparing for a shake-up? Rumors suggest Stripe is considering acquiring PayPal, which was already acquired last year by a stablecoin platform.

Stripe is considering acquiring all or part of PayPal’s business, as both companies actively focus on stablecoins and crypto payments. The market is watching for a potential reshuffle of the payments industry.

According to Bloomberg on Tuesday, citing sources familiar with the matter, fintech company Stripe, which has been actively expanding into cryptocurrency and stablecoin businesses in recent years, is contemplating acquiring all or part of digital payments pioneer PayPal.

The report states that Stripe, a private company, has expressed preliminary interest in acquiring this digital payments pioneer or some of its assets. However, discussions are still in the early stages, and it is uncertain whether a deal will ultimately be reached.

On Tuesday, Stripe announced plans to go public with a share buyback program for employees, offering current and former staff the opportunity to cash out their shares. The company’s valuation is estimated at $159 billion. It is reported that Stripe will use its own funds for share repurchases, with support from investors such as Thrive Capital, Coatue, and a16z.

Meanwhile, once-dominant PayPal, which led the e-commerce boom in the late 1990s and helped popularize digital wallets, has seen its market share and technological edge gradually erode in recent years due to rising competitors like Stripe, revealing signs of decline.

Both PayPal and Stripe have shown strong interest in cryptocurrencies, especially stablecoins.

Last year, Stripe acquired stablecoin platform Bridge, which has received preliminary approval from the U.S. Office of the Comptroller of the Currency (OCC) and could become a federally chartered bank in the future.

On the other hand, PayPal partnered with Paxos in 2023 to launch the PYUSD stablecoin, which currently has a market cap of about $3.8 billion and is the largest USD-backed stablecoin issued under U.S. federal regulation.

A recent survey by PayPal indicates that nearly 85% of respondents expect crypto payments to become a daily norm within the next five years. The company also announced plans to launch a new peer-to-peer (P2P) payment feature, with support expanding to Bitcoin, Ethereum, and stablecoins.

PayPal’s stock surged on Monday following initial news of attracting potential buyers, and continued to rise on Tuesday after Bloomberg’s report. However, over the past year, the stock has declined nearly 40%, reflecting investor concerns about PayPal’s long-term growth prospects.

• This article is reprinted with permission from BlockCast
• Original title: “Digital Payment Landscape Faces Major Shakeup? Rumors: Stripe Considering Acquiring PayPal”
• Original author: Block Sister MEL