Stripe, Advent seek to acquire PayPal in $53bn bid

Payments giant Stripe and private equity firm Advent International have made a joint $53 billion bid to acquire PayPal, in what could become one of the biggest fintech deals ever and a transaction that could reshape the global digital payments industry.

The two companies have offered $60.50 per share for PayPal, representing a premium of about 28 percent over the company’s recent closing share price. The offer, backed by approximately $50 billion in committed bank financing, was submitted earlier this month, according to people familiar with the discussions.

Read also: US investors partner Edo on e-mobility manufacturing initiative

If successful, the acquisition would combine two of the world’s biggest digital payments platforms at a time when the industry is rapidly evolving under pressure from artificial intelligence, changing consumer behaviour and growing competition from technology giants.

Sources said Stripe and Advent first approached PayPal in April and are now seeking to move discussions forward after yet to receive a formal response from the company. Under the proposal, both firms would own PayPal equally rather than split up the business.

The proposed takeover comes as PayPal struggles to regain momentum after years of slowing growth and increasing competition from digital wallets such as Apple Pay and Google Pay. Once valued at nearly $360 billion during the pandemic-era technology boom in 2021, PayPal’s market value has fallen sharply to around $53 billion, reflecting investors’ concerns over slower growth and market share losses.

The bid also arrives just months after new chief executive officer Enrique Lores launched a broad restructuring programme aimed at restoring growth. PayPal has reorganised its business into three operating units covering checkout services, Venmo consumer financial services, and payments and cryptocurrency operations, alongside sweeping management changes.

The company is also betting heavily on artificial intelligence to improve efficiency. Management expects AI-driven operational changes to save about $1.5 billion over the next two to three years, with those savings planned for reinvestment into new growth initiatives.

Despite its challenges, PayPal continues to process enormous payment volumes. In the first quarter, revenue rose seven percent to $8.35 billion, beating analysts’ expectations, while total payment volume increased eight percent on a currency-neutral basis to approximately $464 billion.

For Stripe, acquiring PayPal would instantly strengthen its position in consumer payments, merchant services, digital wallets and cryptocurrency transactions, creating a payments powerhouse with an even broader global reach. Stripe, one of the world’s most valuable privately held fintech companies, was valued at $159 billion earlier this year following a share sale.

The proposed acquisition also reflects a broader wave of consolidation across the payments industry. Companies are increasingly pursuing mergers and acquisitions to gain scale, expand into faster-growing areas such as cross-border and business-to-business payments, and accelerate investments in AI as traditional payment processing matures.

Read also: Explainer: Why Nigeria’s banks are parking trillions at the CBN instead of lending

Recent transactions include Global Payments’ $24.2 billion acquisition of Worldpay and Nuvei’s $2.7 billion purchase of Payoneer, highlighting how dealmaking is becoming a key strategy for companies seeking to remain competitive.

If completed, the Stripe-PayPal transaction would rank among the largest acquisitions in fintech history and could redefine competition in digital payments by creating a stronger rival to established players including Apple Pay, Google Pay and Mastercard. It would also underscore a growing belief across the industry that future growth will depend less on standalone expansion and more on scale, technology and AI-driven innovation.