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.

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.