Mizuho: If Stripe Acquires PayPal, It Could Expand Consumer Business via Venmo

Odaily News Mizuho analysts stated that if payment company Stripe proceeds with a potential acquisition of PayPal, it would help Stripe expand further from its traditional merchant payment business into the consumer market. Previous reports indicated that Stripe is considering acquiring all or part of PayPal's business.

In terms of scale, the transaction is feasible. Stripe's latest valuation is approximately $159 billion, significantly higher than PayPal's market capitalization of around $43 billion. Analysts believe that PayPal's vast user base and its peer-to-peer payment app Venmo would provide Stripe with strong consumer-facing brand and user network support.

Furthermore, PayPal's Braintree merchant payment infrastructure could also enhance Stripe's competitiveness in the payment processing market. Analysis points out that Braintree could bring Stripe approximately $700 billion in Total Payment Volume (TPV), while Stripe's current annual TPV is about $1.4 trillion.