#United States #PayPal #San Jose #Blue Owl Capital #BNPL

PayPal Partners with Blue Owl Capital for BNPL Growth

In a significant move for both companies, PayPal Holdings, Inc., traded publicly under NASDAQ as PYPL, has announced a multi-year partnership with Blue Owl Capital (NYSE: OWL). This collaboration is set to unlock approximately $7 billion worth of PayPal's Buy Now, Pay Later (BNPL) receivables across the U.S., a strategic step aimed at bolstering their already popular Pay in 4 product.

Agreement Details

The newly signed two-year agreement allows Blue Owl Capital’s managed funds to acquire a large volume of BNPL loans issued by PayPal. Under this framework, PayPal retains responsibility for all customer interactions, including underwriting procedures and loan servicing. The continuity of PayPal's direct consumer engagement ensures a seamless service experience.

The Pay in 4 Product

Launched back in 2020, PayPal’s Pay in 4 service allows customers to make purchases break into four equal, interest-free payments over six weeks. This enabling feature stands as a clear choice for consumers aiming for budget-friendly shopping options. Hence, PayPal's BNPL solutions have gained a stronghold in the market, available wherever PayPal is accepted within its core territories.

With the growing popularity of BNPL services globally, this partnership aligns perfectly with market demands. Statistics indicate consumers utilizing BNPL usually tend to spend, on average, 80% more compared to standard transactions. In 2024 alone, PayPal processed over $33 billion in BNPL volumes, marking a 21% increase year-over-year.

Strengthening Merchant Opportunities

The collaboration between these two financial giants allows merchants to offer flexible payment solutions without the typical technological burdens often encountered when integrating standalone BNPL systems. The unified approach enhances the overall consumer experience while driving sales, as buyers can confidently opt for BNPL without hesitation.

According to Jamie Miller, Chief Financial Operating Officer at PayPal, the collaboration is a calculated strategy that fits perfectly within their light-balance sheet model for credit management. The financial backing from Blue Owl strengthens PayPal's capabilities to further innovate and invest in its strategic growth ventures.

Insights from Blue Owl Capital

Ivan Zinn, Head of Alternative Credit at Blue Owl, expressed excitement about this alliance, recognizing PayPal’s robust position in the BNPL market, which enables it to make calculated credit extension decisions informed by extensive consumer interactions. Blue Owl aims to optimize its portfolio with high-quality assets like those being generated by PayPal's Pay in 4 offerings.

This partnership signals a new era of growth and opportunity, with an expectation for enhanced financial health for both companies as they tap into the flourishing BNPL market. The potential financial benefits are already reflected in PayPal's projected earnings for the latter half of 2025.

About Blue Owl

As of June 30, 2025, Blue Owl Capital stands as a leading asset manager with over $284 billion under its management across credit, real assets, and GP strategic capital. The company is committed to providing capital solutions that drive sustainable growth while offering diversified investment opportunities to its clients.

About PayPal

Having transformed global commerce for more than 25 years, PayPal’s services allow consumers and businesses to engage in simpler, more secure transactions across about 200 countries. With its innovative approach, it has continued to adapt to changing consumer needs, reinforcing its position in the marketplace.

With this exciting new partnership, PayPal and Blue Owl Capital are set to reshape the future landscape of consumer financing, providing more flexibility and options for users looking for short-term payment solutions.