Private equity firm KKR has agreed to acquire a substantial portion, or up to $44 billion, of PayPal’s buy now, pay later (BNPL) loans in Europe. The deal is expected to close in the second half of 2023 and will generate about $1.8 billion in gross proceeds for PayPal.
PayPal’s BNPL service allows customers to make purchases and then pay for them over a period of time, typically six weeks or longer. The service has become increasingly popular in recent years, particularly among millennials and Gen Z consumers.
The acquisition by KKR is a sign of the growing interest in BNPL services. BNPL providers offer a convenient and flexible way for consumers to make purchases, and they are seen as a potential threat to traditional credit card companies.
The deal is also a significant win for KKR, which has been expanding its investments in the financial technology sector. KKR has previously invested in companies such as Affirm, Klarna, and Square.
