PayPal and KKR have expanded their partnership through a new agreement that will enable KKR’s credit funds and accounts to purchase up to €65 billion of PayPal’s current and future European buy-now-pay-later receivables through March 2028. The renewed arrangement includes a loan commitment of up to €6 billion and covers BNPL loans originated in France, Germany, Italy, Spain, and the United Kingdom.
The agreement builds on the companies’ initial partnership from June 2023, through which KKR has been acquiring most of PayPal’s European BNPL receivables. PayPal will continue managing all consumer-facing responsibilities for its BNPL products in Europe, including underwriting and servicing.
By strengthening this partnership, PayPal aims to maintain a balance sheet strategy focused on flexibility, growth opportunities, and capital efficiency. The company noted that the expanded BNPL receivables sale framework supports the long-term growth trajectory of its European installment payment products. KKR highlighted the scale of the transaction as a demonstration of the capabilities within its Asset-Based Finance platform.
KKR Capital Markets arranged debt financing for the transaction. PayPal confirmed that the new agreement was already included in its previously issued fourth quarter and full year 2025 guidance for GAAP and non-GAAP earnings per share and non-GAAP transaction margin dollars.
KEY QUOTES
“Our continued partnership with KKR reflects the ongoing success of our European buy now, pay later business and our disciplined approach to balance sheet management. The enhanced terms of this new agreement will support the ongoing growth of our BNPL portfolio in Europe. It demonstrates our commitment to a balance sheet light model for credit that helps preserve flexibility for strategic investments and capital return.”
Jamie Miller, Chief Financial and Operating Officer, PayPal
“We are pleased to continue supporting PayPal, which has built a strong and high-quality BNPL platform in Europe, as it continues to grow in this important market. This expanded commitment underscores the scale and versatility of KKR’s global Asset Based Finance (ABF) platform.”
Vaibhav Piplapure, Managing Director, KKR
