PayPal sells consumer credit portfolio to Synchrony for USD 7 billion

Wednesday 4 July 2018 00:08 CET | News

PayPal has announced that it sells USD 5.8 billion in consumer credit receivables to Synchrony Financial as a part of an expanded collaboration.

The deal announced in November 2017 has now closed, with Synchrony acquiring eventually USD 7.6 billion in receivables, including PayPal’s US consumer credit portfolio, totaling USD 6.8 billion at the close, as well as around USD 0.8 billion in participation interests held by unaffiliated third parties. PayPal received approximately USD 6.9 billion in total consideration at the time of closing.

The two companies have been partners since 2004, offering PayPal-branded credit cards that allow PayPal users to shop online and in stores. As part of the agreement, the companies have extended through 2028 their credit card program agreement involving the PayPal Extras Mastercard and the PayPal Cashback Mastercard.

In addition, Synchrony will now be the exclusive issuer of the PayPal Credit online consumer-financing program in the US, also through 2028.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: PayPal, consumer credit, Synchrony Financial, card, MasterCard
Countries: World