PayPal announced that KKR has agreed to purchase up to €40bn of PayPal’s European, existing and future, buy now pay later (BNPL) loans.

The deal is structured as a €3bn replenishing loan commitment.

The BNPL loans are in France, Germany, Italy, Spain and the UK.

The deal is being funded through KKR’s private credit funds and accounts.

PayPal will continue underwriting and servicing the loans.