PayPal European BNPL Loans To Be Bought By KKR For €40bn

PayPal has made a deal with private equity company KKR to sell up to €40 billion of its buy now, pay later loans in Europe.

KKR will buy almost all of PayPal’s BNPL loans in France, Germany, Italy, Spain, and the UK, as well as any new loans that are made in the future. PayPal will still be in charge of everything that has to do with customers.

The deal is set to close in the second quarter and will give PayPal about $1.8 billion at first, which will be used to give more money back to shareholders and for other general business reasons.

During morning trade, PayPal’s shares went up by almost 3%.

Gabrielle Rabinovitch, who is PayPal’s acting CFO, says:

“Our collaboration with KKR will allow us to accelerate our PayPal Pay Later originations alongside market demand in Europe while preserving free cash flow for other strategic initiatives.”