Blue Owl to Buy $7 Billion of PayPal’s Buy Now, Pay Later Loans

Blue Owl Capital Inc. agreed to buy about $7 billion of buy now, pay later loans from PayPal Holdings Inc. over the next two years.

PayPal will continue to be responsible for all customer-facing activities for the loans, including underwriting and servicing, the firms said in a statement Wednesday. The deal echoes a 2023 agreement under which San Jose, California-based PayPal agreed to sell as much as €40 billion ($47 billion) of BNPL loans to KKR & Co. to free up capital for share buybacks.

The agreement with New York-based Blue Owl “is another great step forward for PayPal and ...