PayPal Holdings, Inc. and alternative asset manager Blue Owl Capital have entered into a two-year agreement under which funds managed by Blue Owl will purchase approximately $7 billion of buy now, pay later (BNPL) receivables originated by PayPal in the U.S. The deal covers PayPal’s U.S. Pay in 4 product, with PayPal continuing to handle all underwriting, servicing, and customer-facing activities. 

Online consumer financing has been part of PayPal’s strategy since 2008, with the Pay in 4 installment product introduced in 2020. BNPL has since become a key growth engine: PayPal processed over $33 billion in BNPL payment volume globally in 2024, a 21% year-over-year increase. 

“This is another great step forward for PayPal and in line with our balance sheet-light model for credit,” said Jamie Miller, CFO & COO of PayPal. Ivan Zinn, Head of Alternative Credit at Blue Owl, added: “We are thrilled to partner with a leader in the BNPL space to bring this high-quality asset to our portfolio.” 

For Blue Owl, the partnership adds to a string of large commitments in consumer and tech-enabled lending. Its credit platform has grown by $50.4 billion over the past year, reaching $145.5 billion as of June. This year alone, Blue Owl committed $3.4 billion to LendingClub’s loan program, $5 billion to SoFi Technologies, $2 billion to Upstart, and $350 million to home equity firm Splitero. In total, Blue Owl ended the second quarter with $284 billion in assets under management. 

The PayPal deal highlights the growing role of private credit managers in consumer lending markets. Competitors are also active: PGIM agreed to purchase up to $3 billion of Affirm-originated loans, ClarityPay secured a $1 billion facility from Neuberger Berman, and Fortress Investment Group committed over $5 billion to SoFi alongside new forward-flow deals with Prosper Marketplace and Happy Money.