Key Points
- PayPal has signed a deal to become the exclusive payment provider for Big Ten and Big 12 student-athletes.
- The deal comes after a recent court ruling that allows colleges to pay their athletes for the first time directly.
- All payments to athletes in those two conferences will be processed through PayPal.
- Students will also be able to use PayPal to pay their college tuition.
PayPal is making a significant entry into the college sports market. The global payment company announced on Thursday that it has signed a deal with the Big Ten and Big 12 conferences to be the exclusive platform for paying their student-athletes.
This all comes on the heels of the recent landmark court settlement in the House v. NCAA case. That ruling completely changed the rules of college sports, allowing schools to compensate their athletes for the first time directly. Schools can now pay out millions of dollars to their current players and billions to former athletes.
Under this new agreement, all of that money for athletes in the Big Ten and Big 12 will flow through PayPal. The company states that the rollout will commence this summer, coinciding with the new NCAA rules taking effect on July 1.
PayPal claims this will make it quick and easy for students to receive payments. As part of the deal, students will also be able to pay their college tuition using PayPal.
“We’re proud to help lead this transformation in college athletics,” said PayPal’s CEO, Alex Chriss.
This is likely just the beginning. The Big 12 Commissioner, Brett Yormark, said he expects other major conferences to sign similar deals with PayPal soon. He mentioned that the ACC could be the next conference to join.