Business
PayPal Announces a Multi-Year Relationship for U.S. Buy Now, Pay Later Receivables with Funds Managed by Blue Owl Capital
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 U.S. PayPal will remain responsible for all customer-facing activities, including underwriting and servicing, associated with its U.S. Pay in 4 BNPL products.
About this update from Blue Owl Capital Inc.
[{"type":"text","content":"Blue Owl managed funds to purchase approximately $7 billion of PayPal "Pay in 4" loans originated in the U.S. over the next two years","length":148,"tagName":"p","attribs":{}},{"type":"text","content":"SAN JOSE, Calif., Sept. 24, 2025 /PRNewswire/ -- 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 U.S. PayPal will remain responsible for all customer-facing activities, including underwriting and servicing, associated with its U.S. Pay in 4 BNPL products.","length":520,"tagName":"p"},{"type":"text","content":"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.","length":415,"tagName":"p"},{"type":"text","content":"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.","length":483,"tagName":"p"},{"type":"text","content":""This is another great step forward for PayPal and in line with our balance sheet-light model for credit," said Jamie Miller, Chief Financial & 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."","length":433,"tagName":"p"},{"type":"text","content":""PayPal's scale and deep relationships with its consumers allows it t...