On September 24, 2025, PayPal Holdings, Inc. announced a two‑year agreement with Blue Owl Capital to purchase approximately $7 billion of U.S. Pay in 4 buy‑now‑pay‑later (BNPL) receivables. PayPal will continue to manage all customer‑facing activities, including underwriting and servicing, for the BNPL products.
The deal provides PayPal with immediate liquidity, allowing the company to fund further BNPL expansion and other strategic initiatives while reducing its balance‑sheet exposure to the receivables. Blue Owl Capital will assume the receivables, creating a stable cash inflow for PayPal.
BNPL remains a key growth driver for PayPal, and the partnership aligns with the company’s strategy to monetize its Pay in 4 product and support merchant adoption. The transaction is already factored into PayPal’s third‑quarter and full‑year 2025 guidance for GAAP and non‑GAAP earnings per share and transaction margin dollars.
The agreement strengthens PayPal’s capital position and supports continued growth in the BNPL segment, providing a reliable source of cash while preserving PayPal’s customer‑facing operations.
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