Big Ten and Big 12 Forge Historic Partnerships with PayPal to Revolutionize Student-Athlete Payments

SAN JOSE, Calif. – June 26, 2025 – PayPal Holdings, Inc. (NASDAQ: PYPL), a global leader in digital payments, today announced groundbreaking multi-year agreements with two of the most prominent collegiate athletic conferences, the Big Ten and Big 12. These landmark partnerships are set to fundamentally modernize the distribution of institutional payments from universities directly to student-athletes, aligning with the evolving landscape of collegiate sports and the new revenue-sharing model.

The agreements signify a pivotal moment for both collegiate athletics and the financial technology sector. By integrating PayPal and Venmo – PayPal's popular peer-to-peer payment service – into the financial infrastructure of these conferences, universities will gain a streamlined, secure, and efficient method for disbursing funds to student-athletes. This move comes as collegiate sports navigate a new era of athlete compensation, driven by recent legal and regulatory shifts that permit student-athletes to benefit from their Name, Image, and Likeness (NIL) and, increasingly, from direct revenue sharing.

Revolutionizing Student-Athlete Compensation

Historically, financial transactions involving student-athletes have been complex and often lacked transparency. The new partnerships with PayPal aim to address these challenges head-on. Universities within the Big Ten and Big 12 will leverage PayPal's robust payment platform to ensure timely and accurate payments, enhancing financial literacy and independence for student-athletes. This initiative is expected to simplify administrative burdens for athletic departments while providing student-athletes with easy access to their earnings through familiar and widely used digital wallets.

"This collaboration with the Big Ten and Big 12 Conferences underscores PayPal's commitment to innovation and our ability to adapt our solutions to meet the unique needs of dynamic sectors," stated a PayPal spokesperson. "We are proud to play a crucial role in empowering student-athletes by providing them with secure and efficient access to their earnings, fostering financial well-being as they pursue their academic and athletic endeavors."

Market Implications and Strategic Positioning for PayPal

For PayPal, these partnerships represent a significant expansion into the collegiate market, a demographic rich with digital-native users. The integration of PayPal and Venmo into university financial systems could lead to increased adoption rates among a younger user base, potentially driving long-term engagement and transaction volume. This strategic move positions PayPal as a key enabler in the burgeoning collegiate sports economy, which is projected to grow substantially in the coming years.

The agreements also highlight PayPal's versatility and its ability to secure large-scale institutional contracts beyond its traditional e-commerce and consumer-to-consumer segments. This diversification of revenue streams and user acquisition channels is a positive indicator for the company's future growth trajectory. The visibility gained through these high-profile partnerships with major athletic conferences could also enhance brand recognition and trust among a broader audience.

Investment Insights for PYPL Shareholders

Investors in PayPal (PYPL) should view these partnerships as a strong positive signal. The agreements demonstrate PayPal's proactive approach to identifying and capitalizing on emerging market opportunities. Key takeaways for investors include:

• New Market Penetration: Entry into the collegiate sports payment ecosystem opens up a significant new vertical for PayPal, potentially leading to substantial transaction volume.
• User Acquisition and Engagement: The partnerships are likely to drive increased adoption of PayPal and Venmo among student-athletes and potentially the wider university community, fostering long-term user growth.
• Diversification of Revenue: Securing large institutional contracts reduces reliance on traditional e-commerce, contributing to a more diversified and resilient business model.
• Brand Enhancement: Association with prestigious collegiate conferences can bolster PayPal's brand image and reinforce its position as a trusted financial technology leader.

While the immediate financial impact may be incremental, the long-term strategic value of these partnerships in terms of market share, user base expansion, and brand positioning is considerable. These agreements reinforce PayPal's commitment to innovation and its ability to adapt to evolving market demands, making it an attractive prospect for investors seeking exposure to the growing digital payments sector and the collegiate sports economy.