PayPal($PYPL) Strikes $7B BNPL Blockbuster with Blue Owl Capital - Fintech Giant Doubles Down on Buy Now, Pay Later

PayPal just dropped a $7 billion bombshell that reshapes the buy now, pay later landscape.

The Strategic Gambit

Teaming up with Blue Owl Capital, PayPal's massive BNPL move signals an aggressive push into flexible payment solutions. This isn't just dipping toes in the water—it's a full-scale invasion of traditional credit territory.

Market Implications

The deal positions PayPal directly against credit card giants and emerging fintech players. With $7 billion in firepower, they're not just competing—they're attempting to redefine how consumers finance everyday purchases.

Wall Street's Reaction

Because nothing makes traditional finance happier than watching companies borrow billions to help people spend money they don't have. The perfect marriage of convenience and debt—what could possibly go wrong?

PayPal's betting big that BNPL represents the future of digital payments. At $7 billion, they'd better be right.

TLDR

• PYPL stock closed at $67.31 on September 23, down 0.55%, but rose 1.28% pre-market to $68.17.
• PayPal signed a $7B BNPL receivables deal with Blue Owl spanning two years.
• The company retains customer-facing activities like underwriting and servicing.
• PayPal processed $33B in BNPL volume globally in 2024, up 21% year over year.
• The transaction is factored into PayPal’s Q3 and full-year 2025 earnings guidance.

PayPal Holdings, Inc. (NASDAQ: PYPL) closed at $67.31 on September 23, 2025, down 0.55% for the day, with shares edging higher in pre-market trading to $68.17.

PayPal Holdings, Inc. (PYPL)

The announcement of a $7 billion agreement with Blue Owl Capital comes ahead of the company’s third quarter and full-year 2025 earnings, with the transaction already integrated into its financial guidance.

$7 Billion BNPL Deal with Blue Owl

Under the agreement, Blue Owl-managed funds will purchase approximately $7 billion in PayPal’s U.S. “Pay in 4” receivables over the next two years. PayPal will remain responsible for underwriting, servicing, and customer interaction.

This MOVE supports PayPal’s balance sheet-light credit model, giving the company more flexibility to invest in innovation and strategic initiatives.

$PYPL and $OWL have announced a 2-year agreement for Blue Owl to purchase $7b in Pay-in-4 BNPL PayPal loans.

These loans carry 0% interest, are due over 6 weeks, and have no late fees. However, PayPal charges 4.99% to the merchant when BNPL is used (which sounds expensive until… pic.twitter.com/7YXkAFpOKi

— Crossroads (@Kross_Roads) September 24, 2025

Growth in Buy Now, Pay Later Services

PayPal first entered online consumer financing in 2008 and launched its Pay in 4 product in 2020. The BNPL service has become one of the most widely available solutions in the market, integrated directly into PayPal’s platform. In 2024, PayPal processed over $33 billion in BNPL volume globally, a 21% increase from the prior year.

Data shows BNPL transactions through PayPal result in order values 80% higher than standard checkouts, highlighting its strong merchant adoption.

Strategic and Financial Benefits

The deal aligns with PayPal’s focus on capital efficiency by freeing resources that WOULD otherwise remain tied to credit receivables. According to CFO Jamie Miller, the partnership demonstrates disciplined capital allocation and positions PayPal to expand its Pay Later portfolio.

For Blue Owl, the agreement adds a high-quality credit asset to its portfolio, reflecting the strength of PayPal’s consumer base and underwriting model.

PayPal’s Market Performance

Despite its innovations, PayPal’s stock has underperformed broader markets. As of September 23, PYPL has a YTD return of -21.14%, a one-year decline of 13.34%, and a five-year loss of 62.94%. By comparison, the S&P 500 has returned over 105% in the same five-year period.

The BNPL deal could help restore investor confidence by highlighting PayPal’s ability to scale efficiently without burdening its balance sheet.

Conclusion

PayPal’s $7 billion BNPL receivables deal with Blue Owl marks a major step in aligning growth with financial discipline. While PYPL stock has lagged broader indices, the move demonstrates strategic foresight as the company prepares for upcoming earnings.

With BNPL adoption growing and capital efficiency improving, PayPal aims to position itself as a stronger player in digital payments.