PayPal announced on September 26, 2025, a two-year agreement to sell approximately $7 billion of receivables from its U.

S. buy now, pay later (BNPL) business to funds managed by New York-based asset manager Blue Owl Capital. This move aligns with PayPal’s strategic shift towards a “balance sheet-light model” for its credit operations.

Under the terms of the agreement, PayPal will continue to manage all customer-facing aspects of the loans, including underwriting and servicing. The deal specifically pertains to PayPal’s Pay in 4 product, which was introduced in 2020 and enables consumers to divide eligible purchases into four interest-free payments over a six-week period.

Jamie Miller, PayPal’s chief financial and operating officer, stated that the agreement with Blue Owl Capital reflects the company’s “disciplined approach to capital allocation.” Miller added, “Partnering with Blue Owl helps support the growth of our Pay Later portfolio and gives us greater ability to invest in our strategic initiatives and innovation.”

PayPal has significantly expanded its Pay Later portfolio, including the acquisition of Japanese BNPL unicorn Paidy for $2.7 billion. Last year, the company processed over $33 billion in BNPL payment volume globally, marking a 21% increase from 2023 figures.

This U.

S. deal follows a similar initiative in Europe, where PayPal arranged to sell up to €40 billion of originated BNPL loans to KKR in 2023. At that time, Gabrielle Rabinovitch, then PayPal’s acting chief financial officer, commented that the collaboration with KKR would “allow us to accelerate our PayPal Pay Later originations alongside market demand in Europe while preserving free cash flow for other strategic initiatives.”