Payments giant PayPal (NASDAQ: PYPL) has a new, and very big, partner in its buy now, pay later (BNPL) business. In a press release, it announced that KKR (NYSE: KKR), a global investment firm managing more than $500 billion in assets, had signed on to buy up to EUR 40 billion -- about $44 billion at recent exchange rates -- of "current and future" PayPal Later loans originated in Europe. 

So what exactly does this deal mean for PayPal going forward? Is PayPal stock a buy? Let's break down the specifics and see. 

At this point, there's not a significant amount of detail, and it's likely that both KKR and PayPal intend to keep the specifics confidential. So we don't know if KKR negotiated a significant discount to the book value of these loans, or if PayPal was able to toe the line on market value. According to the terms of the deal that were disclosed, KKR will buy "substantially all" of PayPal's European BNPL loans held on its balance sheet, as well as future European BNPL loans PayPal originates, with the deal capped at the EUR 40 billion mentioned earlier. PayPal, a leader in digital payments, will continue to service existing and new loans, originate new ones, and operate all aspects of the customer-facing side. 

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Source Fool.com