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Mizuho: If PayPal is acquired, Stripe may use Venmo to expand its consumer-facing presence
Svmuu News: Mizuho analysts say that if payment company Stripe moves forward with a potential acquisition of PayPal, it would help the company expand further from its traditional merchant payment business into the consumer market. Earlier reports indicated that Stripe is considering acquiring all or part of PayPal’s business. In terms of scale, the deal is feasible. Stripe’s latest valuation stands at approximately $159 billion, significantly higher than PayPal’s market capitalization of about $43 billion. Analysts believe that PayPal’s massive user base and its peer-to-peer payment app Venmo would provide Stripe with a strong consumer-facing brand and user network. Additionally, PayPal’s Braintree merchant payment infrastructure could enhance Stripe’s competitiveness in the payment processing market. Analysts note that Braintree could bring Stripe approximately $700 billion in total payment volume (TPV), while Stripe’s current annual TPV stands at around $1.4 trillion.
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