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It could be time for PayPal (PYPL) - Get PayPal Holdings Inc Report to get cracking on a bid for fellow payments processor Square (SQ) - Get Square, Inc. Class A Report .

The purchase of Square would give PayPal increased acceptance with bricks and mortar retailers, Loop Capital analyst Joseph Vafi wrote in a note Tuesday. All in, the deal would further PayPal's efforts to become a "true, two sided network," according to Vafi. 

Vafi estimates PayPal would be able to pay a 30% premium for Square, valuing the company at more than $12 billion using current prices.

As TheStreet pointed out recently, Square has several attractive qualities that could catch the attention of suitors. Chief among them is its growing international reach.  

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International payments is one of Square's four "pillars" of growth, Chief Marketing Officer Kevin Burke explained during the company's May investors day.

Outside of the U.S., San Francisco-based Square operates in Canada, Japan, Australia and the UK. "That represents about 40% of household consumption in the world," Burke said. "So we're making good progress, but there's still another $24 trillion out there."

PayPal's shares rose 2.3% to $56.02 each on Wednesday morning. Square's fell 0.5% to $25.32.

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