On September 24, 2025, PayPal Holdings, Inc. (NASDAQ: PYPL) announced a significant multi-year partnership with Blue Owl Capital (NYSE: OWL), a prominent alternative asset manager. This collaboration entails a two-year agreement wherein funds managed by Blue Owl will acquire approximately $7 billion in Buy Now, Pay Later (BNPL) receivables originated by PayPal in the United States. This strategic initiative is expected to bolster PayPal's already robust BNPL offerings while allowing the company to maintain its customer-facing responsibilities.

2. The Pay in 4 Product

PayPal's foray into online consumer financing began in 2008, with the launch of its Pay in 4 product in 2020 marking a pivotal moment in its BNPL strategy. This innovative offering allows consumers to split eligible purchases into four interest-free payments over six weeks, making it an attractive option for shoppers. PayPal's BNPL solutions are integrated across nearly all platforms that accept PayPal, enhancing its accessibility in key markets.

Benefits for Merchants and Consumers

The integration of BNPL options provides merchants the flexibility to offer varied payment solutions, ultimately driving higher sales. With PayPal’s infrastructure, merchants can implement these options seamlessly, often at a lower cost compared to standalone BNPL providers. Notably, global data indicates that consumers utilizing BNPL have an average order value exceeding 80% higher than standard transactions.

In 2024, PayPal reported processing over $33 billion in global BNPL payment volume, reflecting a robust 21% increase from the previous year.

3. Leadership Insights

Jamie Miller, PayPal’s Chief Financial & Operating Officer, commented on the significance of this transaction, stating, "This is another great step forward for PayPal and in line with our balance sheet-light model for credit. This transaction reflects our disciplined approach to capital allocation. Partnering with Blue Owl helps support the growth of our Pay Later portfolio and gives us greater ability to invest in our strategic initiatives and innovation."

Ivan Zinn, Head of Alternative Credit at Blue Owl, expressed enthusiasm about the partnership, highlighting PayPal's scale and consumer relationships that enable informed credit decisions through the Pay in 4 product. "We are thrilled to partner with a leader in the BNPL space to bring this high-quality asset to our portfolio," he added.

4. Financial Implications

The transaction is set to influence PayPal's third quarter and full-year 2025 financial guidance regarding GAAP and non-GAAP earnings per share, as well as non-GAAP transaction margin dollars announced on July 29, 2025. This proactive approach to capital management indicates PayPal's commitment to enhancing its financial performance while expanding its BNPL services.

5. About Blue Owl Capital

Blue Owl Capital, managing over $284 billion in assets as of June 30, 2025, specializes in providing alternative investment opportunities across multiple strategies, including Credit, Real Assets, and GP Strategic Capital. With a strong focus on long-term growth and capital preservation, Blue Owl is well-positioned to support PayPal's BNPL initiatives.

6. Conclusion

This partnership marks a significant advancement for PayPal in the competitive BNPL landscape. By collaborating with Blue Owl Capital, PayPal not only strengthens its financing solutions but also enhances its ability to innovate and grow in the rapidly evolving fintech market. As consumer preferences continue to shift towards flexible payment options, this strategic alliance could set the stage for further growth and success in the BNPL sector.

Original press release