PayPal Holdings, Inc. (NASDAQ: PYPL) and KKR have announced a new agreement for KKR to purchase up to €65 billion of buy now, pay later (BNPL) loan receivables originated by PayPal in France, Germany, Italy, Spain, and the United Kingdom. This new agreement builds on the successful partnership announced in June 2023, under which KKR’s credit funds and accounts have been purchasing a majority of PayPal’s European BNPL receivables.
Under this new agreement, KKR has committed to a replenishing loan of up to €6 billion, supporting the ongoing growth of PayPal's BNPL portfolio in Europe. PayPal will continue to be responsible for all customer-facing activities, including underwriting and servicing, associated with its European BNPL products.
The agreement is already contemplated in PayPal’s fourth-quarter and full-year 2025 guidance for GAAP and non-GAAP earnings per share, and non-GAAP transaction margin dollars announced on October 28, 2025.
The enhanced terms of this new agreement reflect PayPal's commitment to a balance-sheet light model for credit, preserving flexibility for strategic investments and capital return. Vaibhav Piplapure, Managing Director at KKR, expressed KKR's pleasure in continuing to support PayPal's growth in the important European market.
The press release also highlights KKR's position as a leading global investment firm that offers alternative asset management, capital markets, and insurance solutions.
This renewed agreement between PayPal and KKR demonstrates the ongoing success of PayPal's European BNPL business and its disciplined approach to balance sheet management, as well as KKR’s continued support of PayPal’s growth in the European market. The market has reacted to these announcements by moving the company's shares -1.47% to a price of $61.89. Check out the company's full 8-K submission here.
