PayPal Holdings and investment firm KKR have renewed and expanded their partnership to fund PayPal’s European buy now, pay later (BNPL) portfolio, the companies said in a joint statement on Monday (17 November 2025).
Under the new agreement, credit funds and accounts managed by KKR will purchase up to €65 billion (US$75.28 billion) in BNPL loan receivables originated by PayPal in France, Germany, Italy, Spain and the United Kingdom through March 2028. The arrangement includes a replenishing loan commitment of up to €6 billion (US$6.95 billion).
The deal builds on an earlier agreement signed in June 2023, which saw KKR acquire a majority of PayPal’s European BNPL receivables. PayPal will continue to manage all customer-facing activities, including underwriting and servicing of loans, while KKR provides long-term funding to support the expansion of the payments company’s instalment offerings.
“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,” said Jamie Miller, Chief Financial and Operating Officer at PayPal.
“The enhanced terms of this new agreement will support the ongoing growth of our BNPL portfolio in Europe. It demonstrates our 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 the agreement highlights the strength of both companies’ collaboration and the growing scale of KKR’s global Asset-Based Finance platform. “We are pleased to continue supporting PayPal, which has built a strong and high-quality BNPL platform in Europe, as it continues to grow in this important market,” he said.
The transaction’s debt was arranged by KKR Capital Markets. PayPal said the deal is already factored into its fourth-quarter and full-year 2025 earnings guidance, announced in late October.
The partnership underlines PayPal’s strategy to expand its European lending business while maintaining a capital-efficient structure. It also reflects continued investor interest in consumer finance assets as demand for flexible payment options remains high across major European markets.
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