Stripe Doesn’t Just Want PayPal, It’s Targeting Shopper Habit Formation

If Stripe’s reported pursuit of PayPal signals anything, it is that the next competitive frontier in payments may not be creating new consumer experiences at all. It may be replacing the financial plumbing beneath the ones consumers already trust.

Stripe and Advent International have offered approximately $53 billion, or $60.50 per share, to buy PayPal. The proposal is, at this stage, only an unsolicited offer. There is no indication PayPal will accept the bid, negotiations remain private, and the transaction may never happen. Yet even before any deal materializes, the proposal has crystallized a much larger conversation inside payments and digital assets.

Stripe has spent years building the infrastructure needed to move stablecoins through merchant systems, corporate treasuries and global payout networks. What it does not have is a mass-market consumer franchise large enough to make those rails part of ordinary payment behavior. PayPal offers 439 million active accounts, the Venmo wallet, a globally recognized checkout button, and a dollar-denominated stablecoin already available to consumers across dozens of markets.

Pairing those assets would not automatically make stablecoins mainstream. It would, however, create an organization controlling both the consumer interface and the merchant infrastructure required to make blockchain settlement invisible, which the digital asset industry has historically lacked.

Read also: Stablecoins Have a Money Market Fund Problem

The PayPal Acquisition Story Is Really About Stablecoin Distribution

Stripe’s stablecoin strategy resembles its original payments strategy. It is abstracting away the infrastructure and selling the resulting capability to businesses.

Moving dollars over blockchain networks is increasingly fast, inexpensive and programmable. What the industry still lacks is a way to place those capabilities underneath hundreds of millions of everyday purchases without requiring consumers to learn an entirely new financial system.

The PayPal deal’s ultimate future remains uncertain, and its financial logic reaches beyond digital assets. However, its cryptocurrency significance is not that Stripe could suddenly expose hundreds of millions of shoppers to tokens. It is that stablecoins could begin handling parts of transactions those shoppers already make without requiring them to understand wallets, blockchains or on-chain settlement at all. The deal isn’t asking consumers to decide to embrace blockchain. It is designed to let them unknowingly begin using it every time they tap “Pay.”

Payments businesses have always depended less on technology than on participation. Credit cards became dominant because millions of merchants accepted them. ACH became essential because every bank connected to it. Real-time payments rails become valuable only after enough institutions join.

See also: Why Stablecoins Are a Money Story, Not a Consumer Story

Stripe’s existing and newly acquired infrastructure gives the FinTech considerable control over the institutional side of blockchain payments. A merchant, marketplace or financial platform can use Stripe and Bridge to accept stablecoin funding, move value across borders or convert digital dollars into local currency. Yet the consumer side remains more fragmented. Most shoppers do not begin a purchase by choosing a blockchain network or selecting a stablecoin. They begin with a familiar merchant, wallet or checkout experience. Stripe’s Link wallet gives the company a growing consumer-facing presence, but it is not yet comparable to the reach or habitual usage of PayPal and Venmo.

PayPal fills that gap. Its wallet relationships are already connected to consumers’ bank accounts, cards, identities and transaction histories. Venmo has established a distinct role in peer-to-peer payments, while PayPal remains embedded across online commerce.

“We think of stablecoins as rails,” Mastercard Executive Vice President of Blockchain and Digital Assets Raj Dhamodharan told PYMNTS in February. “Each stablecoin can be thought of as a global ACH, where the consumer doesn’t see the complexity.”

“The technology underneath this is quite powerful,” Dhamodharan added. “But that alone is not sufficient. To unlock the full value, really that orchestration needs to be provided.”

In that sense, the PayPal deal’s promise would not be to replace every card transaction with an on-chain payment. It would be to make stablecoins one option inside a broader routing system that also includes cards, bank transfers and conventional internal ledgers.

The Most Powerful Stablecoin Payment Is the One Nobody Sees

A cross-border payment today may involve an issuing bank, card network, acquiring bank, processor, correspondent institutions and foreign exchange providers. A company controlling the wallet, merchant connection, stablecoin conversion and payout process could internalize more of those functions.

Rather than asking consumers and merchants to adopt a new payment method, Stripe is envisioning a combined organization with PayPal’s reach that could insert stablecoin settlement into an already functioning network. That distinction matters because distribution is expensive. PayPal has spent decades acquiring users, satisfying regulatory requirements and building consumer recognition. Stripe has spent years integrating with merchants, platforms and software companies. A stablecoin launched inside that combined network would not need to build both sides of a marketplace from the ground up.

The combined company would also have to decide how PayPal’s stablecoin, PYUSD, fits inside Bridge’s multistablecoin infrastructure. Favoring PayPal’s token could undermine Stripe’s position as a neutral provider to businesses using competing stablecoins. Treating PYUSD as merely one token among many, meanwhile, could limit the strategic value PayPal expects from its issuance and reserve economics.

Read also: A Stablecoin History Lesson: The Messy Origins of the Internet’s ‘Digital Dollar’

The more direct pressure could fall on the less visible layers of international payments, including correspondent banking, prefunded accounts, standalone remittance providers, foreign exchange intermediaries and payout platforms. Still, technical capability is not the same as consumer readiness. Disputes, refunds, fraud losses and unauthorized transactions do not disappear when settlement moves to a blockchain. Someone must continue deciding when a payment can be reversed and which participant absorbs the loss.

The PYMNTS Intelligence report “Waiting for Certainty: Why Most CFOs Are Holding Back on Crypto and Stablecoins,” the March installment of the 2026 Certainty Project, showed that most middle-market companies remain cautious about digital assets. Usage is limited, with 13% of firms using stablecoins and 5% employing other cryptocurrencies.