PayPal Holdings and global investment firm KKR have renewed their partnership, with KKR agreeing to purchase up to €65 billion—roughly $75 billion—of PayPal’s buy‑now‑pay‑later (BNPL) loan receivables that originated in France, Germany, Italy, Spain and the United Kingdom. The agreement also includes a replenishing loan commitment of up to €6 billion, or about $7 billion, giving KKR the capacity to provide ongoing capital to support PayPal’s European BNPL portfolio.
The deal builds on the June 2023 partnership that saw KKR acquire up to €40 billion of BNPL receivables. By expanding the purchase to €65 billion, PayPal signals confidence in the continued growth of its European installment‑payment products and reinforces its balance‑sheet‑light strategy. The transaction is already factored into PayPal’s fourth‑quarter and full‑year 2025 guidance, following a strong Q3 2025 earnings report that showed net revenues of $8.4 billion—up 7 % year‑over‑year—and GAAP earnings per share of $1.30, a 32 % increase.
Offloading the receivables allows PayPal to reduce its exposure to credit risk while freeing capital that can be deployed toward strategic initiatives, such as expanding its commerce footprint and returning value to shareholders through dividends and share repurchases. The €6 billion loan commitment provides PayPal with a flexible source of working capital, ensuring that the BNPL portfolio can continue to grow without tying up balance‑sheet resources.
For KKR, the expanded partnership represents a deepening of its asset‑based finance platform. KKR’s Q3 2025 results highlighted robust performance, with adjusted earnings per share beating analyst expectations and record management‑fee income. The €65 billion purchase gives KKR access to a diversified pool of consumer loans across five major European markets, aligning with its strategy to invest in high‑return, low‑leverage opportunities.
PayPal’s European BNPL segment has been a key growth engine, with revenue from the segment rising 20 % year‑over‑year in Q3 2025, driven by strong demand from younger consumers and increased retailer adoption. The partnership is expected to accelerate that trajectory by providing the capital and risk‑management infrastructure needed to scale the program while maintaining PayPal’s focus on underwriting and customer service.
Jamie Miller, PayPal’s Chief Financial and Operating Officer, said the renewed partnership “reflects the ongoing success of our European buy‑now‑pay‑later business and our disciplined approach to balance‑sheet management. The enhanced terms will support the continued growth of our BNPL portfolio in Europe and demonstrate our commitment to a balance‑sheet‑light model that preserves flexibility for strategic investments and capital return.” Vaibhav Piplapure, Managing Director at KKR, added, “This expanded commitment underscores the scale and versatility of KKR’s global asset‑based finance platform.”
Analysts view the deal as a positive reinforcement of PayPal’s BNPL strategy and a sign that the company’s liquidity position remains strong. The transaction is expected to support PayPal’s guidance for the remainder of 2025 and to provide a foundation for future growth in the European market.
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