PayPal's board has concluded that a roughly $53 billion takeover proposal from Stripe and private-equity firm Advent International undervalues the payments company, according to people familiar with the matter.

The approach, still at an early stage, arrives as PayPal works to reignite growth amid intensifying competition in digital payments, checkout technology and emerging stablecoin settlement.

A combination with Stripe would unite two of the largest checkout and payments networks in the world, reshaping how merchants and consumers transact online and potentially redrawing the competitive map.

Advisers are weighing whether a higher offer or structural concessions could bridge the gap between the bid and the board's view of intrinsic value, the people said.

Any deal would likely face intense antitrust scrutiny on both sides of the Atlantic, given the combined company's reach across online commerce and financial infrastructure.

Analysts say the episode underscores a broader consolidation wave in fintech, where once-highflying payments firms are being forced to defend valuations in a higher-rate environment.

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