Our customers tell us time and again that credit is one of their most important needs when it comes to managing their financial lives. At PayPal, we see providing access to credit as an important part of our mission to democratize financial services. Credit helps people and businesses grow and achieve their aspirations. 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.
Today, we are expanding our relationship with Synchrony Financial to further enhance and grow our consumer credit product offerings. Through this transaction, Synchrony Financial has agreed to acquire PayPal’s U.S. consumer credit receivables portfolio. Together, PayPal and Synchrony Financial are committed to working together to build innovative, more personalized payment experiences for consumers and merchants on our unrivaled two-sided network.
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. Our business financing solutions like PayPal Working Capital will continue to operate as they do today and we will continue to integrate Swift Financial into our business.
Since 2004, PayPal has partnered with Synchrony Bank, a wholly owned subsidiary of Synchrony Financial, to offer PayPal-branded consumer credit card options that enable cardholders to shop online and in stores. With today’s announcement, PayPal and Synchrony Bank will be expanding our program agreement to include the PayPal Credit online consumer financing program available to PayPal’s U.S. customers. We expect this expanded relationship will allow us to continue providing access to innovative consumer credit options, enhance customer payment experiences, deliver leading account management capabilities, and deploy cash previously used to fund credit receivables to invest in our business.
We look forward to further collaborating with Synchrony Financial to invest in and grow our consumer credit offerings. Subject to regulatory approval and other customary conditions, this transaction is expected to close in the third quarter of 2018.
Forward Looking Statements About PayPal
This announcement contains “forward-looking” statements within the meaning of applicable securities laws. Forward-looking statements and information relate to future events and future performance and reflect, among other things PayPal’s expectations regarding the anticipated benefits of this transaction and the timing of the closing of the transaction. Forward looking statements may be identified by words such as “seek”, “believe”, “plan”, “estimate”, “anticipate”, expect”, “intend”, and statements that an event or result “may”, “will”, “should”, “could”, or “might” occur or be achieved and any other similar expressions.
Forward-looking statements involve risks and uncertainties which may cause actual results to differ materially from the statements made. Factors that could cause or contribute to such differences include, but are not limited to, the timing and possible outcome of regulatory approvals in connection with the transaction, the possibility that the transaction may not close, and the possibility that the anticipated benefits of the transaction may not be realized. More information about these and other factors can be found in PayPal Holdings, Inc.’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the Securities and Exchange Commission (the “SEC”), and its future filings with the SEC.
There are no assurances PayPal can fulfill forward-looking statements and information. Such forward-looking statements and information are only predictions based on current information available to the PayPal management team as of the date that such predictions are made; actual events or results may differ materially as a result of risks facing PayPal, some of which are beyond PayPal’s control. Although PayPal believes that any forward-looking statements and information contained in this announcement are based on reasonable assumptions, readers cannot be assured that actual outcomes or results will be consistent with such statements. Accordingly, readers should not place undue reliance on forward-looking statements and information.