Bag repair

Ok so I was gifted this bag from a friend and I really want to fix it.

He found it working at an estate sale so I have no other info other than that it feels like leather. I thought that real leather chips differently so I’m not sure if someone painted the bag but I would love to fix it.

(Is it even worth it to fix? The bag seems vintage but I’m not sure where the serial # is either.)

I was thinking about trying to peel the brown off and the repainting with leather paint? If anyone has a better recommendation or has any idea what the material is I would love to know!

Thanks so much