PayPal stock has decreased by over 20% in 2025 due to competition and economic uncertainty. However, a new partnership with Blue Owl Capital to sell BNPL receivables may lead to a recovery. PayPal’s BNPL segment has shown strong growth, with second-quarter volume up by over 20%.

The Blue Owl deal allows PayPal to reduce credit risk and invest in innovation, positioning it for growth. PayPal’s net loan receivables increased by 7% in the second quarter, driven by BNPL and international portfolios. Revenue diversification efforts and partnerships like the one with Blue Owl set the stage for a rebound.

PayPal continues to see profitable growth, with transaction margin dollars up 8% in Q2. Account growth and user engagement are strong, with active accounts reaching 438 million. Innovations like Pay with Venmo and BNPL solutions are driving higher engagement and increasing payment volumes.

PayPal is expanding into a broader commerce platform with investments in AI, cryptocurrency, and advertising. Its focus on revenue diversification and profitability, along with strategic investments, hint at a potential share price recovery. Analysts rate PayPal stock as a “Moderate Buy” due to its focus on strengthening its balance sheet and improving profitability.

Read more at Yahoo Finance: PayPal Partners with Blue Owl. Is PYPL Stock Poised for a Rebound?