PayPal's stock surged nearly 7% on Tuesday following a report that fintech startup Stripe is weighing buying the payments platform.

Bloomberg reported the news, citing people familiar with the matter, and said the discussions are in early stages. The report said Stripe is considering buying all or some segments of PayPal's business.

The news comes a day after reports that buyer interest has picked up in the company following its recent stock slump.

PayPal and Stripe declined to comment on the report.

PayPal, which is grappling with slowing growth in an increasingly competitive financial payments industry, has plummeted more than 19% since the start of the year. The company shed nearly a third of its value in 2025.

Earlier this month, the stock plunged on lackluster profit guidance and its board appointed HP's Enrique Lores as its new CEO to start at the beginning of March.

Meanwhile, fintech startup Stripe hit a $159 billion valuation on Tuesday following a secondary stock sale for employees and shareholders.

That's up from the $91.5 billion a year ago. Stripe said in a business update that its revenue suite is slated to reach an annual run rate of $1 billion this year.

Stripe, which ranked 10th on CNBC's Disruptor 50 list last year, has transformed into one of the most valuable private companies yet and recently acquired billing startup Metronome in January.

Stripe co-founder and president John Collison told CNBC's Andrew Ross Sorkin on Tuesday that the company isn't yet aiming for an IPO, which would sidetrack its current product and business growth.

Read the full Bloomberg article here.