Synchrony Financial has closed a deal to acquire PayPal’s consumer credit portfolio for nearly $7 billion.
In November 2017, PayPal announced it had agreed to sell $5.8 billion in consumer credit receivables to Stamford-based Synchrony as part of an expanded relationship between the two companies. The final deal involved Synchrony paying approximately $6.9 billion for PayPal’s U.S. consumer credit portfolio and additional participation interests held by unaffiliated third parties.
PayPal, headquartered in San Jose, California, and Synchrony have been partners since 2004, when they began offering PayPal-branded credit cards allowing users to shop online and in stores. As part of the deal to sell the consumer credit receivables business, 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 U.S., also through 2028.
“This collaboration plays to both companies’ strengths in providing seamless digital payments and innovating for partners, merchants and consumers,” said Synchrony President and CEO Margaret Keane. “Together we can provide an enhanced customer experience for thousands of merchants and consumers.”