Under the agreement, PayPal will continue to manage all the customer-facing activities (underwriting of loans, servicing, customer relations) while KKR takes on the bulk of the receivables purchase.
PayPal and KKR, a leading global investment firm, have announced the renewal of their strategic agreement under which KKR’s credit funds and accounts will purchase up to €65 billion of PayPal’s Buy-Now–Pay-Later (BNPL) loan receivables originated across France, Germany, Italy, Spain, and the UK through March 2028.
This cooperation model, where PayPal manages customer service aspects and KKR is responsible for backing this BNPL offering with financial infrastructure, allows PayPal to grow its BNPL business without committing as heavily to its own capital and risk exposure and giving the firm flexibility to invest in innovation, platform growth, or other strategic initiatives.
The deal covers major European markets: France, Germany, Italy, Spain, and the UK. That signals confidence in the regional BNPL sector as a large, investable asset class, while BNPL regulation, consumer expectations, payments infrastructure and competition are all evolving in Europe.
Furthermore, by strengthening BNPL funding and infrastructure in Europe, this deal supports the broader trend of alternative credit payment models (beyond traditional cards). Flexible payment offering support by major fintech providers may also help stimulate merchant adoption of BNPL and encourage competition, innovation, as well as regulatory clarity in the sector.
The BNPL payment market in Europe is forecast to reach over $190 billion in 2025 to further expand to about $293 billion by 2030.
Earlier, PayPal introduced a 5% cashback offer on Buy Now, Pay Later (BNPL) purchases for the 2025 holiday season to its U.S. customers.
