PayPal has entered a two-year agreement with Blue Owl Capital to sell about $7 billion in U.S. buy now, pay later (BNPL) receivables, part of its shift toward a “balance sheet-light” credit model. While PayPal will retain responsibility for underwriting, servicing, and customer management, the deal frees capital to support growth and innovation across its Pay Later portfolio. The move follows PayPal’s earlier €40 billion BNPL loan sale to KKR in Europe (2023). It reflects a broader strategy to expand BNPL offerings globally while maintaining financial discipline and cash flow flexibility.

PayPal Offloads $7Bn in US BNPL Receivables to Blue Owl Capital