PayPal Completes Sale of Consumer Credit Receivables to Synchrony

| By:


Yesterday, PayPal (NASDAQ: PYPL) announced the closing of its sale of $7.6 billion of consumer credit receivables to Synchrony (NYSE:SYF) for roughly $6.8 billion. At the end of 2017, PayPay announced that it had agreed to sell consumer credit receivables to Synchrony Financial as a part of an expanded relationship between the two companies.

The completion of yesterday’s transaction means that PayPal and Synchrony have extended their existing co-brand consumer credit card program agreement, and Synchrony is now the exclusive issuer of the PayPal Credit online consumer financing program in the U.S., through 2028.

“We’re pleased that we’ve completed the sale of our U.S. consumer credit receivables portfolio,” said President and CEO of PayPal Dan Schulman. “Our agreement with Synchrony accomplishes every goal we set out for our asset light strategy. We look forward to working with Synchrony to double down on our innovative consumer credit experiences for our customers and profitably grow the portfolio over time.”

The relationship between PayPal and Synchrony is not at all new. The two companies have partnered to offer PayPal-branded consumer credit cards to consumers since 2004. Synchrony will update the financial impact of this transaction in its second quarter 2018 earnings call.

Last modified: July 6, 2018

Category: Industry News

Home Industry News › PayPal Completes Sale of Consumer Credit Receivables to Synchrony


    ROK Financial

    CAN Capital

    Queen Funding

    Accord Business Funding

    Key Capital Group

    The Smarter Merchant

    Monetaria

    Yardline

    Forward Financing

    Merchant Financing Leads

    Meridian Leads

    Avanza Capital

    Lending Valley

    Better Accounting Solutions

    Fox Business Funding

    IOU Financial

    CapFront

    Wynwood Capital Group

    Meged Funding Group

    Legend Funding

    United Business Funding

    Cashyew

    Torro

    Idea Financial

    Liquidibee

    Hunter Caroline

    Splash Advance