PayPal Fields Buyout Approaches After Steep Share Decline: Report

PayPal Holdings has reportedly attracted unsolicited takeover interest after a prolonged stock slump left the payments giant trading well below recent highs, signaling that competitors were looking to consolidate their footprint in the digital payments space. 

Citing people familiar with the matter, Bloomberg reported Monday that PayPal has been meeting with banks to review buyout approaches from unnamed investors. One potential bidder — described as an industry rival — is said to be exploring an acquisition of the entire company, while others have expressed interest in specific PayPal assets.

There is no guarantee a deal will materialize, and discussions remain at an early stage, the report said.

Shares jumped following the news, but the rebound only partly offsets a bruising year for investors. PayPal stock had fallen roughly 46% over the past 12 months before Monday’s report, according to market data. Shares were up more than 6% on Monday.

The company has pivoted toward digital assets as part of its turnaround strategy. Then-CEO Alex Chriss positioned stablecoins as a way to address what he described as the “innovator’s dilemma” — the risk that established companies become too reliant on legacy products and miss disruptive technological shifts. 

Earlier this month, Chriss was removed from the job following disappointing fourth-quarter 2025 financial results. Enrique Lores, currently HP’s CEO, was tapped to lead PayPal through its next phase.

Related: YouTube enables PYUSD stablecoin payouts for US creators: Report

Despite struggles, PayPal’s crypto push gains traction

Although PayPal’s broader turnaround has been uneven, its expansion into digital assets has produced measurable results.

Its dollar-pegged stablecoin, PayPal USD (PYUSD), has surpassed $4 billion in market capitalization, making it the sixth-largest stablecoin globally. It now trails only USDt (USDT), USDC (USDC), Ethena USDe (USDe), Dai (DAI) and World Liberty Financial USD (USD1), according to market data.

Beyond issuing its own stablecoin, PayPal has expanded its crypto payments infrastructure. The company recently introduced shareable payment links that allow users to send cryptocurrencies and stablecoins through peer-to-peer transfers, broadening access beyond traditional wallet-to-wallet transactions.

Earlier in 2025, PayPal also launched “Pay with Crypto,” a blockchain-based settlement service that lets merchants accept digital asset payments while receiving funds in fiat currency. The offering reflects PayPal’s push to position itself as a bridge between traditional payments and on-chain settlement.

However, neither initiative was mentioned earlier this month in the company’s earnings announcement nor on management’s subsequent call with analysts.

Related: Stablecore’s Jack Henry integration opens stablecoins to 1,600 banks