Stripe, the privately-held payments technology company, is exploring a potential acquisition of PayPal, according to a report by Bloomberg .

The discussions are at an early stage, with Stripe said to be considering either a full takeover or a deal for select PayPal assets. Neither Stripe nor PayPal has issued a public statement on the matter. Both companies declined to comment when approached by Bloomberg. News of the potential deal sent PayPal's share price up approximately seven per cent in trading following the report.

The development comes days after Bloomberg separately reported that PayPal had been attracting interest from multiple potential suitors. PayPal has faced a turbulent period in recent months.

The company's latest earnings disappointed investors, weighed down by softer US retail spending and slowing growth in its core branded checkout business. Its share price has fallen more than 40 per cent over the past year, bringing its current market capitalisation to just over $40 billion. In response to ongoing performance concerns, PayPal's board appointed Peter Lores — formerly of HP — as its new chief executive, tasking him with reversing the company's fortunes and addressing competitive pressure from Big Tech payment services including Apple Pay and Google Pay.

Stripe, by contrast, recently reaffirmed its private market valuation at $159 billion through a tender offer designed to provide liquidity to current and former employees — nearly four times PayPal's current market value. Should a deal proceed, it would rank among the largest transactions in the history of the financial technology sector and would likely attract significant regulatory scrutiny from competition authorities in the United States and Europe.