PayPal Teams Up With Blue Owl In $7 Billion Buy Now, Pay Later Deal

Group 1 - PayPal and Blue Owl Capital have entered a two-year agreement for Blue Owl to purchase approximately $7 billion of PayPal's buy now, pay later (BNPL) receivables in the U.S. [1] - PayPal has been offering BNPL services since 2008, with the Pay in 4 product launched in 2020, allowing consumers to split purchases into four interest-free payments over six weeks [2][3] - In 2024, PayPal processed over $33 billion in BNPL payment volume globally, representing a 21% increase from 2023 [4] Group 2 - The BNPL service enhances sales for merchants and integrates well within the PayPal ecosystem, often at lower costs compared to standalone BNPL providers [4] - PayPal's Chief Financial & Operating Officer stated that the agreement aligns with the company's balance sheet-light model for credit [5] - The deal is reflected in PayPal's third-quarter and full-year 2025 guidance for earnings per share and transaction margin dollars [6] Group 3 - PayPal plans to invest $100 million in the Middle East and Africa to foster innovation and support entrepreneurs, aiming to promote inclusive economic growth [6][7] - The investment will be executed through minority stakes, acquisitions, and funding from PayPal Ventures, focusing on scaling local businesses and expanding digital economy access [7] - This initiative follows the launch of PayPal's first regional hub in Dubai, aimed at providing seamless payments and expanded market access [8]