Feb. 23: Digital payments company PayPal is attracting takeover interest from potential buyers as its stock price tumbles, Bloomberg News reported on Monday, citing people familiar with the matter.

The payments company is meeting with banks amid unsolicited interest from suitors, the report said, adding that at least one major rival has its sights on the entire company, and some other suitors are only interested in specific PayPal assets.

According to a report from Bloomberg, buyer interest in PayPal is still in the preliminary stages and may not result in a deal.

PayPal, which has a market capitalization of more than $38 billion, declined to comment on the report. Reuters could not independently verify the report.

The company’s shares were last up 7% in afternoon trading. Since hitting a record high in mid-2021, its value has fallen by about 85%.

Earlier this month, PayPal replaced CEO Alex Chriss, who was appointed to take the helm of the payments company as growth slowed and competition increased. The company’s 2026 profit outlook was weak, falling far short of Wall Street expectations.

The company’s board of directors, which named chairman Enrique Lores as its new president and CEO, said the pace of change and execution under Criss had not matched expectations.

PayPal also warned that retail spending is sluggish as shoppers, weighed down by rising interest rates, persistently high living costs and signs of a softening labor market, cut back on discretionary spending and focused on essentials.

Investors have worried that the entry of Big Tech companies such as Apple and Google into PayPal’s core payments business could eat into PayPal’s market share despite its traditional leadership position.

PayPal saw a surge in usage during the coronavirus pandemic as consumers turned to digital payments, but growth has since slowed and the company has struggled to maintain its momentum despite a multi-year turnaround plan.