PayPal Holdings Inc. (PYPL) stock surged nearly 7% on Monday following a Bloomberg report that the digital payments giant has attracted unsolicited takeover interest. The rally, which triggered a brief volatility halt in trading, signals renewed market focus on the company after a bruising year that saw its stock price plummet roughly 46% over the past 12 months.
The Bloomberg report, citing people familiar with the matter, indicated that PayPal has been meeting with banks to review buyout approaches. At least one large payments rival is exploring an acquisition of the entire company, while other unnamed investors have expressed interest in specific PayPal assets. The discussions are described as being at an early stage, and there is no guarantee a deal will materialize. PayPal did not comment on the report.
The takeover chatter provided a stark contrast to the company's recent performance. Before the report, PayPal's market value had settled near $38.4 billion following months of steady declines. The company has faced intensified competition across e-commerce, banking tools, and alternative payment services, which has slowed growth despite recent cost-cutting and product reshaping efforts.
Amid its broader struggles, PayPal's push into digital assets has shown notable traction. Its dollar-pegged stablecoin, PayPal USD (PYUSD), has surpassed $4 billion in market capitalization, making it the sixth-largest stablecoin globally. The company has also expanded its crypto infrastructure, launching "Pay with Crypto"—a blockchain-based settlement service for merchants—and shareable payment links for peer-to-peer crypto transfers.
The report comes during a leadership transition. Earlier in February 2026, then-CEO Alex Chriss was removed following disappointing Q4 2025 financial results. Enrique Lores, currently HP's CEO, was tapped to lead the company. Chriss had previously positioned stablecoins as a key part of PayPal's strategy to avoid the "innovator's dilemma."
The broader payments sector is undergoing consolidation as firms seek scale and unified technology stacks, increasing cross-industry interest in established platforms like PayPal. The sharp midday price action, with shares pushing toward $44.51, demonstrates how quickly market sentiment can shift when strategic acquisition talks emerge.
