PayPal Holdings, Inc. (NASDAQ: PYPL) and KKR, a global investment firm, announced the signing of a new agreement for an up to €6 billion replenishing loan commitment under which credit funds and accounts managed by KKR will 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 agreement builds on the partnership announced in June 2023, under which KKR’s credit funds and accounts “have been purchasing a majority of PayPal’s European BNPL receivables.”
PayPal will continue to remain responsible for all “customer-facing activities, including underwriting and servicing, associated with its European BNPL products.”
Jamie Miller, Chief Financial and Operating Officer at PayPal said that the enhanced terms of this new agreement will “support the ongoing growth of our BNPL portfolio in Europe.”
Miller added that it demonstrates their “commitment to a balance-sheet light model for credit that helps preserve flexibility for strategic investments and capital return.”
Vaibhav Piplapure, Managing Director at KKR said that this expanded commitment underscores the “scale and versatility of KKR’s global Asset-Based Finance (ABF) platform.”
This agreement is 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.”
As noted in the update shared by PayPal, KKR is a global investment firm that offers alternative asset management as well as “capital markets and insurance solutions. ”
KKR aims to generate steady investment returns by claiming to adhere to a patient and “disciplined investment approach, employing people, and supporting growth in its portfolio companies and communities.”
As mentioned in the announcement, KKR currently supports investment funds that invest in private equity, credit and real assets and has “strategic partners that manage hedge funds.”
KKR’s insurance subsidiaries reportedly provided retirement, life and reinsurance products under the “management of Global Atlantic Financial Group.”