PayPal to sell $7bn in BNPL loans to Blue Owl Capital

PayPal Holdings, Inc. and Blue Owl Capital, a leading alternative asset manager, 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.

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Blue Owl (NYSE: OWL) is a leading asset manager that is redefining alternatives®.

With over $284 billion in assets under management as of June 30, 2025, we invest across three multi-strategy platforms: Credit, Real Assets and GP Strategic Capital. Anchored by a strong permanent capital base, we provide businesses with private capital solutions to drive long-term growth and offer institutional investors, individual investors, and insurance companies differentiated alternative investment opportunities that aim to deliver strong performance, risk-adjusted returns, and capital preservation.