Global payment company PayPal announced on Thursday that it has inked a deal with the Big Ten and Big 12 conferences to allow student-athletes to receive compensation through the fintech company’s platform.
The announcement comes just weeks after a court settlement in the House v. NCAA case, which dramatically shifts the college sports landscape by allowing schools to compensate student-athletes for the first time. The settlement allows individual schools to distribute up to $20.5 million to current athletes over the next year, and provides up to $2.8 billion in compensation to former players across the NCAA.
The new agreement will allow Big Ten and Big 12 athletic departments to dispense these payments using PayPal exclusively.
PayPal said the initial rollout is expected to begin this summer. The House settlement takes effect on July 1.
The deal will allow students at Big Ten and Big 12 universities to receive their compensation quickly and securely, PayPal said. The company added students will also have the option to pay their college tuition via PayPal, which will become a preferred payment partner at select schools.
“We’re proud to help lead this transformation in college athletics by making it easier and faster for student-athletes to get paid and continue to bring trusted and innovative commerce solutions to the heart of campus life,” PayPal President and CEO Alex Chriss said in a statement.
Big 12 Commissioner Brett Yormark told CNBC’s “Squawk Box” he expects other conferences will soon partner with PayPal, as well.
“It is a great day for student-athletes, and I’m sure other conferences are going to embrace this opportunity,” Yormark said. “I was told last night, the ACC is up next, so you’re going to see this program roll out across campuses throughout the country.”
PayPal Big12 Debit Card
Source: PayPal
As part of the deal, PayPal is also introducing conference-branded debit cards available with each school’s logo.
Chriss said the company’s research shows that more and more college students are wanting to pay with debit and “buy now, pay later” as their credit option.
“It’s becoming the way that people want to spend…they don’t want credit cards as often,” Chriss told Squawk Box, noting that “buy now, pay later” grew 20% for the company last quarter.
PayPal’s mobile payment service Venmo is also expanding its position in college sports.
Venmo will be the presenting partner for the first-ever Big Ten Rivalry Series and will serve as the official partner of the Big 12 Conference. The company is also working with Big Ten and Big 12 schools to allow students to use Venmo at college bookstores and for campus athletics for items such as tickets, concessions and merchandise.
The Big Ten Conference expanded to 18 schools last August includes the University of Maryland, Penn State University, University of Michigan and the Ohio State University. The Big 12 Conference includes 16 schools such as Arizona State University, the University of Central Florida…
Read More: PayPal partners with Big Ten, Big 12 on student-athlete payments
