PayPal and Blue Owl Capital enter a two-year agreement under which Blue Owl will acquire approximately $7 billion of PayPal’s US “Pay in 4” Buy Now, Pay Later receivables, helping PayPal maintain a balance-sheet light credit model while scaling its BNPL offerings.
Highlights:
$7B Receivables Sale: Blue Owl managed funds will purchase roughly $7 billion of PayPal’s US Pay in 4 BNPL receivables over the next two years.
PayPal Retains Control of Operations: Despite the sale, PayPal continues to handle underwriting, servicing, and all customer-facing aspects of its Pay in 4 product.
Strategic Financial Move: The deal aligns with PayPal’s strategy to keep credit exposure off the balance sheet, free up capital, and focus on innovation and growth in its BNPL portfolio.
Summary:
PayPal has struck a major deal with Blue Owl Capital: over a two-year term, funds managed by Blue Owl will purchase about $7 billion worth of PayPal’s US buy now, pay later (BNPL) receivables from its “Pay in 4” product line. Although PayPal is selling these receivables, it remains fully responsible for underwriting and servicing the loans—meaning it retains the customer interface, risk management, and operations related to those BNPL products.
This move allows PayPal to scale its BNPL business while reducing the strain on its balance sheet—a balance-sheet-light strategy that enables it to invest more in strategic initiatives like product innovation and customer acquisition. The $7B transaction is already accounted for in PayPal’s third quarter and full-year 2025 financial guidance.
