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.
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Doc, I can’t help to wonder if you are also arbitraging in the equity market based on some of the M&A related things you are posting. Maybe a new category for your posting?
+1
DoC, I’ll use your referral link for Robinhood, Stash or whatever if you’re branching out.
Simple error: you left out the “billion” from “$0.80 billion”
Fixed, thanks
Synchrony has (been the) co-branded credit card issuer… the exclusive (not exclude) issuer.
Not a grammar police but I was a bit confused when I read the sentences the first time.
Thanks.
Thanks, I should probably sleep more
Couple typos you made there, but interesting nonetheless. I’m guessing this really doesn’t mean anything significant for us as consumers, at least in the short term. So now PayPal is focusing on being solely a payment processor?
Feel free to let me know about any typos so I can fix it. They want to go asset light for other acquisitions. They acquired iZettle for $2.2 billion, hyperwallet for $500 million, jetlore, Simility for $120 million & swift financial.
as long as we can read it and makes sense without causing confusion, its fine. otherwise grammar and spelling police would be all over that shit. e.g. exclusive vs exclude.
Doc posts on a holiday and we’re worried about spelling mistakes?
I don’t mind people letting me know about errors, as long as they aren’t super mad about the errors existing I’m happy to fix them.
It’s pretty late but “this is part of PayPal’s new asset light strategy that they are perusing” but all in all interesting but perusing – typo – and I’m pretty it should be “asset-light”, but whatever.
Thanks, appreciate it.
Orin, I’m fairly certain you meant to say “pretty sure it should be…. ‘ not ” pretty it should be…”. 0;) B (Just saying….)
U got it
There is uncertainty if paypal credit will start appearing on credit reports, which would be significant
Wilson, One can hope PayPal will appear on credit reports. It will be a definite win for me if it ever does.
Is there any word about whether Walmart will continue to accept PayPal
Balance and PayPal Credit as payment?