Nov 17 (Reuters) - PayPal ( PYPL ) and KKR have

renewed their partnership that will see the investment giant

purchase up to 65 billion euros ($75.4 billion) of the payments

provider's European buy now, pay later loans, the companies said

on Monday.

The new deal, which includes a replenishing loan commitment

of up to 6 billion euros, builds on an existing tie-up announced

in June 2023, under which KKR's credit funds and accounts have

been buying most of PayPal's ( PYPL ) European BNPL receivables.

BNPL products have gained ground among consumers in recent

years, particularly among millennials and Gen Z who are drawn to

short-term credit.

Usage has spiked across major markets as online shopping

rises, household budgets tighten and more retailers adopt the

service, pushing lenders and investment firms to deepen their

exposure to the fast-growing sector.

"This expanded commitment underscores the scale and

versatility of KKR's global Asset-Based Finance (ABF) platform,"

said Vaibhav Piplapure, managing director at KKR.

Asset-based finance is a type of lending where companies

borrow money secured against specific assets such as

receivables, inventory or equipment.

PayPal ( PYPL ) said the deal is accounted for in its fourth-quarter

and full-year profit growth forecast.

The company will remain responsible for all customer-facing

activities, including underwriting and servicing associated with

its European BNPL products.

In October, PayPal ( PYPL ) raised its profit forecast for the year,

banking on resilient consumer spending, and announced its

first-ever dividend.

($1 = 0.8620 euros)

(Reporting by Manya Saini in Bengaluru; Editing by Sriraj

Kalluvila)