Venmo, PayPal consumer reach could bolster Stripe in potential acquisition deal: Mizuho

Mizuho analysts, following reports that Stripe is interested in acquiring all or part of PayPal, believe that PayPal’s consumer scale, particularly through its Venmo app, would significantly strengthen Stripe’s expansion beyond its core business-to-business (B2B) focus. The analysts noted that Stripe's $159 billion valuation dwarfs PayPal's $43 billion market cap, making a transaction feasible size-wise. Acquiring PayPal would give Stripe a scaled consumer brand and the "ultimate" peer-to-peer franchise. Furthermore, PayPal's Braintree merchant infrastructure could add about $700 billion in Total Payment Volume (TPV) to Stripe, helping it compete with rivals like Adyen. Both companies are active in the stablecoin sector, and a combined entity could become a stronger player in that space.

(Source：The Block)