(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)