Finance
KKR to buy up to $75.4 billion of PayPal's European BNPL loans in renewed deal
Published by Global Banking and Finance Review
Posted on November 17, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on November 17, 2025
2 min readLast updated: January 21, 2026
KKR renews its partnership with PayPal, acquiring €65 billion in European BNPL loans, enhancing its asset-based finance platform.
(Reuters) -PayPal and KKR have renewed their partnership that will see the investment giant purchase up to 65 billion euros ($75.4 billion) of the payments provider's European buy now, pay later loans, the companies said on Monday.
The new deal, which includes a replenishing loan commitment of up to 6 billion euros, builds on an existing tie-up announced in June 2023, under which KKR's credit funds and accounts have been buying most of PayPal's European BNPL receivables.
BNPL products have gained ground among consumers in recent years, particularly among millennials and Gen Z who are drawn to short-term credit.
Usage has spiked across major markets as online shopping rises, household budgets tighten and more retailers adopt the service, pushing lenders and investment firms to deepen their exposure to the fast-growing sector.
"This expanded commitment underscores the scale and versatility of KKR's global Asset-Based Finance (ABF) platform," said Vaibhav Piplapure, managing director at KKR.
Asset-based finance is a type of lending where companies borrow money secured against specific assets such as receivables, inventory or equipment.
PayPal said the deal is accounted for in its fourth-quarter and full-year profit growth forecast.
The company will remain responsible for all customer-facing activities, including underwriting and servicing associated with its European BNPL products.
In October, PayPal raised its profit forecast for the year, banking on resilient consumer spending, and announced its first-ever dividend.
($1 = 0.8620 euros)
(Reporting by Manya Saini in Bengaluru; Editing by Sriraj Kalluvila)
Buy now, pay later (BNPL) is a payment option that allows consumers to purchase goods or services and pay for them over time, typically in installments, without incurring interest if paid on time.
Receivables are amounts owed to a company by its customers for goods or services provided on credit. They are considered an asset on the company's balance sheet.
Underwriting is the process by which a financial institution evaluates the risk of insuring or lending to a customer, determining the terms and conditions of the financial product offered.
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