PayPal’s $7 Billion Blue Owl Deal Reshapes BNPL Landscape Ahead of Earnings

PayPal has unveiled a transformative $7 billion agreement with Blue Owl Capital just days before its third-quarter earnings announcement, fundamentally restructuring its approach to the buy-now-pay-later sector. While the company’s stock price demonstrated initial stability following the September 24 revelation, market observers are debating whether this represents the strategic breakthrough PayPal has needed or indicates underlying vulnerabilities.

The arrangement with Blue Owl Capital signals a dramatic shift in PayPal’s operational methodology. Under the agreement, PayPal will transfer approximately $7 billion worth of its U.S. “Pay in 4” loan receivables to funds managed by Blue Owl. Crucially, PayPal retains all customer-facing operations, including credit assessment processes and transaction management.

This capital-light approach resolves a significant challenge: PayPal can continue expanding its... Read more...