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PayPal and KKR enter relationship for BNPL receivables
EU regulators have joined the US and UK in examining Adobe’s acquisition of cloud-based design software firm Figma. The concern is that Adobe is basically making the acquisition to remove a credible competitor. Personally, I had never used or even heard of Figma prior to the deal. What’s wrong with Microsoft Paint?
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Credit: REUTERS/Dado Ruvi
PayPal and KKR enter relationship for BNPL receivables
PayPal and KKR have signed a multi-year agreement that allows KKR to purchase up to €40 billion of current and future PayPal Pay Later loans originated in Europe.
KKR's private credit funds will acquire almost all of the European BNPL loan portfolio currently held on PayPal's balance sheet and will also acquire future eligible BNPL loans. PayPal expects to generate around $1.8 billion of proceeds from the transaction, which will be used to increase capital returns to shareholders.
For the consumer, this means little, as PayPal will continue in all consumer facing roles. It is odd, however, that you can now purchase a takeaway meal using PayPal and owe a debt not to the retailer, PayPal or KKR but to a private credit fund, units in which may be held by anyone.
(Here is an interesting video on the sustainability of the industry.)
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The bottom line
