PayPal Holdings and global investment firm KKR renewed their agreement in which KKR’s credit funds and accounts purchase PayPal’s European buy now, pay later (BNPL) receivables.
The new agreement includes a replenishing loan commitment of up to 6 billion euros (about $7 billion) under which KKR will purchase up to 65 billion euros (about $75 billion) of BNPL loan receivables originated by PayPal in France, Germany, Italy, Spain and the United Kingdom, the companies said in a Monday (Nov. 17) press release.
The companies launched their partnership in June 2023, when PayPal sold more than $43 billion worth of its European BNPL loans to KKR and said KKR would also acquire future originations of eligible BNPL loans.
Since that time, KKR has purchased most of PayPal’s European BNPL receivables, according to the release.
PayPal remains responsible for underwriting, servicing and all other customer-facing activities associated with its European BNPL products, per the release.
“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,” PayPal Chief Financial and Operating Officer Jamie Miller said in the release. “The enhanced terms of this new agreement will support the ongoing growth of our BNPL portfolio in Europe.”
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Miller added that PayPal’s “balance-sheet-light model” facilitates strategic investments and capital return.
KKR Managing Director Vaibhav Piplapure said in the release that PayPal’s BNPL platform in Europe is strong and growing.
“This expanded commitment underscores the scale and versatility of KKR’s global Asset-Based Finance (ABF) platform,” Piplapure said.
It was reported in January that PayPal and other companies were driving a boom in BNPL activity in the U.K. In 2024, BNPL activity in the country increased by almost 20%.
When reporting its third-quarter financial results on Oct. 28, PayPal highlighted its growth in Europe. The company said that during the third quarter, its international total payment volume grew 5% year over year on a foreign exchange-neutral basis, driven by continued growth in Europe, while its cross-border total payment volume increased 4% year over year on a foreign exchange-neutral basis, driven predominantly by intra-European corridors.
PayPal announced Wednesday (Nov. 12) that it is relaunching in the U.K. as a “unified payment experience” that lets British consumers access the new PayPal+ loyalty program along with the company’s debit and credit cards.
The PYMNTS Intelligence report “The Global Appeal of an Everyday App: Focus on Europe” found that European consumers trusted PayPal more than banks to provide a theoretical everyday app that would combine banking, shopping and personal activities.
