PayPal Holdings Inc. is drawing takeover interest from potential buyers after its stock price tumbled nearly 50%, erasing almost half its market value, according to sources familiar with the matter. The San Jose-based digital payments pioneer has held preliminary meetings with banks amid unsolicited interest from suitors, including at least one major rival considering a full acquisition.

While some suitors are eyeing specific PayPal assets, the company's broader struggles have made it an attractive target. PayPal shares have fallen 46% over 12 months, reducing its market value to approximately $38.4 billion. The payments company faces intensifying competition from Apple Pay and Google Pay while customers increasingly adopt alternative payment methods.

Enrique Lores takes over as president and CEO on March 1, inheriting a company that recently ousted former CEO Alex Chriss after his turnaround efforts fell short. Fourth-quarter results missed analyst expectations, showing continued slowdown in payment volume and market share erosion. Though buyer interest remains preliminary and may not result in a transaction, PayPal's dramatic valuation decline has positioned it as a potential takeover target in the consolidating digital payments landscape.