KKR to buy nearly $44 billion of PayPal's buy now, pay later loans in Europe


FILE PHOTO: The PayPal logo is seen on a smartphone in front of the same logo displayed in this illustration taken September 8, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) -Investment firm KKR has agreed to purchase a substantial portion, or up to 40 billion euros ($43.71 billion), of PayPal's buy now, pay later (BNPL) loans in Europe, the payments company said on Tuesday.

Even though BNPL remains popular after the pandemic-led surge in its use among millennials and Gen Z customers, the sector's fortunes turned last year as rising interest rates and red-hot inflation dampened the purchasing power of consumers.

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