Payment processor PayPal Holdings Inc. (NASDAQ:PYPL) said on Thursday it would sell its $6.8 billion receivables profile to consumer financial company Synchrony Financial (NYSE:SYF), including its U.S. consumer credit receivables portfolio.
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The companies said the deal is expected to close in the third quarter of 2018, pending regulatory approval.
"Our expanded relationship with Synchrony Financial will free up cash currently used to fund consumer credit receivables for other uses, while accelerating our ability to deliver engaging credit and payments experiences for our customers. We believe this transaction significantly advances our strategic and financial goals,” PayPal President and CEO Dan Schulman said in statement.
At closing, the two companies will extend the existing co-brand consumer credit card program agreement, while Synchrony Bank will become the exclusive issuer of the PayPal Credit online consumer financing program in the U.S. for 10 years, according to the press release.