When it comes to growing your small business, getting the right credit offering can make all the difference. PayPal (NASDAQ: PYPL) and small business online lending company Synchrony Financial (NYSE: SYF) have announced they are expanding their partnership to offer you just that — more options to get credit.
PayPal and Synchrony Are Expanding Their Partnership
As part of the expanded partnership, Synchrony Financial will acquire PayPal’s U.S. consumer credit receivables portfolio that’s valued at $5.8 billion. “This will free up cash currently used to fund consumer credit receivables for other uses,” PayPal Chief Executive Dan Schulman said in a statement.
In freeing up more cash for other uses, the sale of PayPal’s U.S. credit assets will reportedly help to improve its digital consumer credit services, and facilitate building of an “innovative, more personalized payment experiences for consumers and merchants on our unrivaled two-sided network.”
Small business merchants who offer PayPal Credit and consumers who enjoy the convenience and flexibility of shopping with PayPal Credit will continue to receive the benefits and seamless buying experiences they have come to expect from PayPal, the company said.
Other online business financing solutions like PayPal Working Capital will also continue to operate as they do today, PayPal noted. The online payments processor will also continue to integrate Swift Financial into its platform to offer more loans to people who use PayPal as a bank (like freelancers).
PayPal Online Consumer Financing Program
PayPal and Synchrony Financial have partnered to offer PayPal-branded consumer credit cards since 2004. When this new deal closes in the third quarter of 2018 subject to regulatory approval, Synchrony Bank, a unit of Synchrony Financial, will become the exclusive issuer of the U.S PayPal Credit online financing program.
“Credit helps people and businesses grow and achieve their aspirations,” Gary Marino, Executive Vice President and Chief Commercial Officer at PayPal, said in a statement accompanying the announcement. “Since 2008, we’ve been proud to offer our U.S. customers online consumer financing that gives shoppers greater financial flexibility and helps merchants sell more, driving greater engagement on our platform.”