Synchrony becomes exclusive issuer of PayPal Credit in U.S.
Co-brand credit card relationship extended for enhanced customer
SAN JOSE, Calif. & STAMFORD, Conn.--(BUSINESS WIRE)--
PayPal Holdings, Inc. (NASDAQ:PYPL) today announced the closing of its
consumer credit receivables transaction with Synchrony (NYSE:SYF). Under
the terms of the transaction, and related transactions with unaffiliated
third parties, Synchrony acquired $7.6 billion in receivables, including
PayPal's U.S. consumer credit receivables portfolio, which totaled $6.8
billion at the time of closing, and approximately $0.8 billion in
participation interests in receivables held by unaffiliated third
parties. PayPal received approximately $6.9 billion in total
consideration at closing.
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With the completion of the transaction, 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 Dan Schulman, President and CEO of PayPal.
"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."
"This collaboration plays to both companies' strengths in providing
seamless digital payments and innovating for partners, merchants, and
consumers. It also expands Synchrony's leadership in consumer credit
programs," said Margaret Keane, President and CEO of Synchrony.
"Together we can provide an enhanced customer experience for thousands
of merchants and consumers."
Since 2004, PayPal and Synchrony Bank have partnered to offer
PayPal-branded consumer credit cards to consumers. The expanded
agreement with Synchrony Bank for both the U.S. PayPal Credit online
consumer financing program and the U.S. PayPal-branded consumer credit
card program allows PayPal to collaborate with an industry leader to
enrich and expand PayPal's consumer credit offerings.
Synchrony will update the financial impact of the transaction in its
second quarter 2018 earnings call.
Fueled by a fundamental belief that having access to financial services
creates opportunity, PayPal Holdings, Inc. (NASDAQ: PYPL) is committed
to democratizing financial services and empowering people and businesses
to join and thrive in the global economy. Our open digital payments
platform gives PayPal's 237 million active account holders the
confidence to connect and transact in new and powerful ways, whether
they are online, on a mobile device, in an app, or in person. Through a
combination of technological innovation and strategic partnerships,
PayPal creates better ways to manage and move money, and offers choice
and flexibility when sending payments, paying or getting paid. Available
in more than 200 markets around the world, the PayPal platform,
including Braintree, Venmo and Xoom, enables consumers and merchants to
receive money in more than 100 currencies, withdraw funds in 56
currencies and hold balances in their PayPal accounts in 25 currencies.
For more information on PayPal, visit www.paypal.com/about
or follow us at @PayPalNews.
For PayPal Holdings, Inc. financial information, visit investor.paypal-corp.com.
Forward Looking Statements About PayPal
This announcement contains "forward-looking" statements within the
meaning of applicable securities laws. Forward-looking statements and
information relate to future events and future performance and reflect,
among other things PayPal's expectations regarding the anticipated
benefits of the transaction. Forward looking statements may be
identified by words such as "seek", "believe", "plan", "estimate",
"anticipate", expect", "intend", and statements that an event or result
"may", "will", "should", "could", or "might" occur or be achieved and
any other similar expressions.
Forward-looking statements involve risks and uncertainties which may
cause actual results to differ materially from the statements made.
Factors that could cause or contribute to such differences include, but
are not limited to, the possibility that the anticipated benefits of the
transaction may not be realized. More information about these and other
factors can be found in PayPal Holdings, Inc.'s most recent Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on
Form 8-K and other filings with the Securities and Exchange Commission
(the "SEC"), and its future filings with the SEC.
There are no assurances PayPal can fulfill forward-looking statements
and information. Such forward-looking statements and information are
only predictions based on current information available to the PayPal
management team as of the date that such predictions are made; actual
events or results may differ materially as a result of risks facing
PayPal, some of which are beyond PayPal's control. Although PayPal
believes that any forward-looking statements and information contained
in this press release are based on reasonable assumptions, readers
cannot be assured that actual outcomes or results will be consistent
with such statements. Accordingly, readers should not place undue
reliance on forward-looking statements and information.
is a premier consumer financial services company delivering customized
financing programs across key industries including retail, health, auto,
travel and home, along with award-winning consumer banking products.
With more than $130 billion in sales financed and 74.5 million active
accounts, Synchrony brings deep industry expertise, actionable data
insights, innovative solutions and differentiated digital experiences to
improve the success of every business we serve and the quality of each
life we touch. More information can be found at www.synchrony.com
and through Twitter: @Synchrony.
Forward Looking Statements About Synchrony
This announcement contains certain forward-looking statements within the
meaning of applicable securities laws. Forward-looking statements may be
identified by words such as "expects," "intends," "anticipates,"
"plans," "believes," "seeks," "targets," "outlook," "estimates," "will,"
"should," "may" or words of similar meaning, but these words are not the
exclusive means of identifying forward-looking statements.
Forward-looking statements are based on management's current
expectations and assumptions, and are subject to inherent uncertainties,
risks and changes in circumstances that are difficult to predict. As a
result, actual results could differ materially from those indicated in
these forward-looking statements.
We caution you against relying on any forward-looking statements,
including those that are included in our public filings, which should be
read in conjunction with the other cautionary statements that are
included in our public filings, including under the heading "Risk
Factors" in the Company's Annual Report on Form 10-K for the fiscal year
ended December 31, 2017, as filed on February 22, 2018. You should not
consider any list of such factors to be an exhaustive statement of all
of the risks, uncertainties, or potentially inaccurate assumptions that
could cause our current expectations or beliefs to change. Further, any
forward-looking statement speaks only as of the date on which it is
made, and we undertake no obligation to update or revise any
forward-looking statement to reflect events or circumstances after the
date on which the statement is made or to reflect the occurrence of
unanticipated events, except as otherwise may be required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180703005221/en/
Greg Ketron, 203-585-6291
Communications & Brand
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