PayPal and Blue Owl Announce $7 Billion Buy Now, Pay Later Partnership

PayPal is taking a notable step forward in the realm of consumer financing with its recent partnership with Blue Owl Capital, a move that could significantly benefit small business owners across the United States. Announced on September 24, 2025, this two-year agreement empowers Blue Owl-managed funds to purchase approximately $7 billion of PayPal’s “Pay in 4” buy now, pay later (BNPL) loans. This collaboration aims to enhance the flexibility and accessibility of payment options for consumers, ultimately impacting small businesses positively.

One of the major advantages of this partnership is the ability for small businesses to leverage PayPal’s BNPL solutions without a heavy technology uplift. The “Pay in 4” program allows consumers to divide eligible purchases into four interest-free payments over six weeks, making larger-ticket items more attainable. According to PayPal’s data, when consumers choose BNPL at checkout, they tend to spend significantly more—over 80% more, to be precise—than they would through traditional payment methods. This feature enables small retailers to boost sales and encourages impulse purchases, which can be particularly advantageous in competitive markets.

Jamie Miller, PayPal’s Chief Financial & Operating Officer, emphasized the strategic nature of this partnership, stating, “This transaction reflects our disciplined approach to capital allocation. Partnering with Blue Owl helps support the growth of our Pay Later portfolio and gives us greater ability to invest in our strategic initiatives and innovation.” This underscores PayPal’s commitment to expanding its services while providing valuable tools to its merchant partners.

For small business owners, the integration of BNPL options means that they can offer customers more adaptability in payments, which can lead to increased customer satisfaction and loyalty. Simplified integration into existing PayPal systems means that merchants can implement these features quickly, allowing them to focus on growth. In fact, PayPal processed over $33 billion in BNPL payment volume globally in 2024, a 21% increase from the previous year, showcasing how rapidly this trend is evolving.

However, while the advantages are considerable, small business owners should remain aware of potential challenges associated with implementing and managing BNPL solutions. One challenge may be the need for effective customer education. As consumers become more accustomed to payment flexibility, ensuring that they understand how these options work will be crucial. Additionally, it’s important for merchants to carefully manage their cash flow; even interest-free payment plans can affect a business’s financial operations if not monitored closely.

Another point to consider is the competitive landscape of BNPL offerings. While PayPal is a well-established player, the growing array of BNPL options from other providers means that small businesses must also consider how these offerings stack up against one another in terms of costs, features, and customer experience. Ivan Zinn, Head of Alternative Credit at Blue Owl, highlighted this partnership by saying, “PayPal’s scale and deep relationships with its consumers allows it to make informed decisions when extending credit through Pay in 4.”

As the BNPL market continues to expand, it’s essential for small business owners to evaluate how they incorporate these financing solutions within their overall sales strategy. Properly leveraging these payment options can lead to enhanced customer engagement and increased sales volume, but business owners must also strategize around potential risks and ensure that they are prepared for the evolving needs of their customers.

The PayPal-Blue Owl partnership is poised to change the way consumers engage with payment options, providing small businesses the tools they need to stay competitive in a dynamic marketplace. For further details about this partnership and its implications, you can refer to the original post on PayPal’s newsroom here.

This article, "PayPal and Blue Owl Announce $7 Billion Buy Now, Pay Later Partnership" was first published on Small Business Trends

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