Stripe in talks to buy PayPal, years after acquiring Nigeria’s Paystack

Stripe, the payments giant that bought Nigerian fintech Paystack for over $200 million in 2020, is now considering an even bigger move: acquiring PayPal.

Bloomberg reported Tuesday that Stripe is in early talks to buy all or part of PayPal’s business. The news sent PayPal’s stock up nearly 7% as investors reacted to the possibility of a deal that could reshape global payments.

Both companies declined to comment on the report, but the timing is telling. PayPal has been struggling; its stock is down 19% this year alone and lost a third of its value in 2025. Meanwhile, Stripe just hit a $159 billion valuation following a secondary stock sale, up from $91.5 billion a year ago.

PayPal’s rough year opened the doors for potential acquisition

PayPal is facing ongoing challenges, including slower growth and increased competition in the digital payment sector. Recently, the company appointed Enrique Lores, formerly of HP, as their new CEO. He will begin in March. This decision followed an announcement of lower-than-expected profit forecasts, which worried investors.

The struggles are what make PayPal a potential acquisition target. For years, the company dominated online payments. Still, competition intensified from companies like Stripe and Square, as well as a wave of fintech startups that built better technology and grabbed market share.

Stripe, meanwhile, is moving in the opposite direction. The company said its revenue is on track to hit a $1 billion annual run rate this year. It recently acquired billing startup Metronome in January and ranks among the world’s most valuable private companies.

Also read: Paga promises to address unresolved PayPal issues

Co-founder John Collison told CNBC that the company isn’t planning an IPO yet; it is focused on growing the product and business.

What this means for Nigeria and African fintech

For Nigeria, this potential deal carries extra weight. Stripe acquired Paystack in October 2020 for more than $200 million, its first African acquisition and one of the continent’s biggest fintech exits at the time. That deal gave Stripe a strong grip on Africa’s payments infrastructure.

PayPal, ironically, just returned to Nigeria last month after two decades of keeping Nigerians locked out. The company partnered with local fintech Paga to finally let Nigerians receive international payments and withdraw funds in Naira.

The digital payment company had restricted Nigerian access in 2004, citing fraud concerns. The restriction blocked millions of freelancers and online businesses from global payments for 20 years.

If Stripe acquires PayPal, it would bring Paystack and PayPal under the same roof, two payment platforms now operating in Nigeria but through very different strategies. Paystack was built from the ground up for African merchants. PayPal came back through a partnership with Paga’s existing infrastructure and 21 million users.

The talks are still in very early stages. If a deal happens, it would create a payments powerhouse with reach across developed and emerging markets, including the African fintech ecosystem that Stripe entered through Paystack.

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