PayPal partners with Big Ten, Big 12 to handle student-athlete payments

SAN JOSE, Calif. - PayPal Holdings, Inc. (NASDAQ:PYPL), a prominent financial services player with a market capitalization of $71 billion and annual revenue exceeding $31 billion, announced Thursday multi-year agreements with the Big Ten and Big 12 Conferences to facilitate institutional payments to student-athletes under a new revenue-sharing model. According to InvestingPro data, the company maintains strong profitability with a 41% gross margin.

The partnership will enable athletic departments to distribute funds to student-athletes through PayPal’s platform, following a recent court decision allowing colleges to share revenue directly with student-athletes.

"We’re proud to help lead this transformation in college athletics by making it easier and faster for student-athletes to receive funds," said Alex Chriss, President and CEO of PayPal.

Big Ten Commissioner Tony Petitti stated the partnership would "ensure a secure, rapid and reliable way for student-athletes to receive institutional payments."

Beyond handling payments to athletes, PayPal will become a preferred payment partner for tuition at select schools starting in early 2026. Venmo, PayPal’s social payments platform, will expand its campus presence by becoming the presenting partner of the first-ever Big Ten Rivalry Series and an official partner of the Big 12 Conference across various sports championships.

The companies plan to enable Venmo acceptance for campus spending, including at bookstores, ticketing, concessions, and merchandise. The first phase of the rollout is expected to begin this summer, with conference sponsorships launching for the 2025-2026 school year.

The information in this article is based on a press release statement from PayPal Holdings, Inc.

In other recent news, PayPal Holdings, Inc. announced an expansion of its equity incentive plan, increasing the number of shares available for issuance by an additional 15 million. This decision was approved by shareholders during the company’s Annual Meeting, which also included the election of 11 director nominees and other governance matters. Additionally, PayPal revealed plans to make its PayPal USD (PYUSD) stablecoin available on the Stellar blockchain network, pending regulatory approval. This expansion aims to leverage Stellar’s infrastructure for faster and lower-cost transactions. Meanwhile, UBS maintained its Neutral rating on PayPal stock, emphasizing the varied profit contributions from different Total Payment Volume categories within the company. In another development, PayPal appointed Deirdre Stanley, a former Estée Lauder executive, to its Board of Directors, bringing her extensive expertise in global brand-building and market insight. Taco Bell has also integrated PayPal and Venmo as payment options in its app and website, offering customers cash back incentives. These developments highlight PayPal’s ongoing initiatives to expand its offerings and strengthen its market position.

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