After the halving of its market value, potential buyers have set their sights on PayPal (PYPL.US) as acquisition rumors boost its stock price against the trend.

According to sources familiar with the matter, after a sharp drop in the stock price causing the market value to evaporate by nearly half, digital payment pioneer PayPal (PYPL.US) is attracting potential buyers' interest in acquisition. Boosted by this news, the stock rose 5.76% on Monday, reaching a high of 9.7% during the trading session. Meanwhile, the stock prices of other payment companies fell on Monday due to a report by Cattrina Research on the potential risks of artificial intelligence (AI) to various sectors of the global economy. Insiders said that this San Jose, California-based company has held meetings with several banks after receiving proactive contact from interested parties. At least one major competitor is evaluating a potential full acquisition of the company, while other potential buyers are only interested in certain assets of PayPal. Insiders cautioned that buyer interest in PayPal is still in the preliminary stages and a deal may not necessarily be reached. PayPal's stock price has dropped by nearly half in the past 12 months. Over the past year, PayPal's stock price has fallen by about 46%. Founded in the late 1990s, PayPal was an early driver in the digital payment field. However, the company is now facing challenges as more and more customers are turning to alternative payment methods. Current Chairman of the Board Enrique Lores will assume the role of President and CEO of PayPal starting March 1st. He will have to address the company's shortcomings in modernizing payment technology and the issue of market share erosion by competitors like Apple Pay and Google Pay. Former CEO Alex Chriss was fired earlier this month due to his transformation plan failing to meet expectations. The company's fourth quarter profits and revenues for 2025 fell short of analyst expectations, and payment transactions continued to slow down. However, analysts at Mizuho Securities believe that PayPal is currently "severely undervalued" as one of the "big four renowned payment networks globally." The company has an annual transaction volume close to $2 trillion and owns the "most influential P2P network" Venmo in the United States. KBW analysts also stated in a report to clients that PayPal's network assets are scarce and strategically valuable, especially for companies looking to have a greater impact in the proxy commerce field.