Synchrony Purchases PayPal Consumer Credit Receivables For $7 Billion & Cobranded Card Deal Extended Until 2028

Today (July 3rd) Synchrony & PayPal closed on a deal that sees Synchrony purchase PayPal’s consumer credit receivables. Synchrony acquires $7.6 billion in receivables ($6.8 billion from PayPal’s U.S. consumer credit receivables & $0.80 billion in unrelated third parties) and PayPal received ~$6.9 billion in total considerations. Synchrony has been the co-branded credit card issuer of the PayPal credit cards since 2004 and they have also announced that this has been extended until 2028. Synchrony also becomes the exclusive issuer of PayPal Credit online consumer financing program in the U.S through 2018 as well. This means that PayPal no longer receives a portion of the interest that these loans generate, but this is part of PayPal’s new asset-light strategy that they are pursuing. Just in case you ever thought credit cards weren’t big business, this should help to dispel that myth. For more information on Synchrony credit cards, please read this post.