PayPal Sells $7B in US BNPL Receivables to Blue Owl Capital in Two-Year Agreement

PayPal Holdings Inc. (NASDAQ:PYPL) is one of the best NASDAQ stocks to buy according to hedge funds. On September 24, PayPal Holdings and alternative asset manager Blue Owl Capital Inc. (NYSE:OWL) executed a two-year agreement. Under this deal, funds managed by Blue Owl will purchase ~$7 billion of Buy Now, Pay Later/BNPL receivables originated by PayPal in the US.

This transaction aligns with PayPal’s balance sheet-light model for credit, but PayPal will retain full responsibility for all customer-facing activities for its US Pay in 4 BNPL products. The financial impact of this transaction is already factored into PayPal’s Q3 and full-year 2025 guidance for both GAAP and adjusted EPS, as well as adjusted transaction margin dollars, which were announced earlier on July 29.

Online consumer financing has been a strategic offering for PayPal since 2008, with the company launching its Pay in 4 product in 2020. The service allows consumers to split eligible purchases into 4 interest-free payments over 6 weeks. For merchants, this option drives higher sales. Globally, consumers who select BNPL spend over 80% per transaction on average compared with standard branded checkout.

PayPal Holdings Inc. (NASDAQ:PYPL) is a technology platform that enables digital payments for merchants and consumers worldwide.

Blue Owl Capital Inc. (NYSE:OWL) is an alternative asset manager in the US. It offers its solutions through permanent capital vehicles and long-dated private funds.

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Disclosure: None. This article is originally published at Insider Monkey.