Stripe, Advent suspend their pursuit of PayPal

The payments landscape is seeing a major shakeup as Stripe and Advent International have reportedly walked away from a $53 billion bid to acquire PayPal. For retailers and operators, this means PayPal will remain an independent, public company rather than merging with its biggest competitor. The failed acquisition puts intense pressure on PayPal’s new leadership to prove they can innovate and lower costs for merchants on their own. This news matters to your business because PayPal and Stripe are the primary engines behind most modern consumer financing and checkout experiences. A merger would have created a massive monopoly in the payments space, potentially reducing your ability to negotiate processing fees. Now that PayPal is remaining independent, they are expected to double down on their own growth strategies. Expect to see PayPal push more aggressively for you to adopt their 'Venmo' integration at checkout and their proprietary Buy Now, Pay Later (BNPL) tools. They need to show investors they can grow without a parent company, which often leads to more competitive feature rollouts and aggressive promotional offers for merchants.

Source: American Banker — Top News

← Return to the library· Submit a correction