PayPal Holdings, Inc. (NASDAQ: PYPL) and Blue Owl Capital (NYSE: OWL), a leading alternative asset manager, today announced the execution of a two-year agreement under which funds managed by Blue Owl will purchase approximately $7 billion of buy now, pay later (BNPL) receivables originated by PayPal in the US.
PayPal will remain responsible for all customer-facing activities, including underwriting and servicing, associated with its US Pay in 4 BNPL products.
Online consumer financing has been a strategic offering of PayPal since 2008 and in 2020 the company launched its Pay in 4 product. PayPal’s BNPL solutions are available nearly everywhere PayPal is accepted in its largest markets, making it one of the most broadly distributed BNPL solutions. Pay in 4 provides consumers with the choice to break up eligible purchases into 4 interest-free payments over 6 weeks.
For merchants, BNPL allows them to offer flexible payment options that drive higher sales, all seamlessly integrated within the PayPal ecosystem with no extra tech work, and often at a lower cost than with standalone BNPL providers. When consumers globally choose BNPL, their average order value is more than 80% higher than a standard branded checkout transaction. In 2024, PayPal processed more than $33 billion of BNPL payment volume globally, up approximately 21% from 2023.
“This is another great step forward for PayPal and in line with our balance-sheet light model for credit,” said Jamie Miller, Chief Financial and Operating Officer of PayPal. “This transaction reflects our disciplined approach to capital allocation. 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’s scale and deep relationships with its consumers allows it to make informed decisions when extending credit through Pay in 4,” said Ivan Zinn, Head of Alternative Credit at Blue Owl. “We are thrilled to partner with a leader in the BNPL space to bring this high-quality asset to our portfolio.”
The transaction is already contemplated in PayPal's third quarter and full year 2025 guidance for GAAP and non-GAAP earnings per share, and non-GAAP transaction margin dollars announced on July 29, 2025.