In a landmark move for the new era of college sports, PayPal has signed an exclusive deal with the Big Ten and Big 12 conferences to become the official platform for paying student-athletes.
The partnership comes just weeks after the historic House v. NCAA settlement, which tore down the long-standing rules against direct compensation and allowed schools to pay their players. Under the settlement, universities can distribute up to $20.5 million annually to their current athletes, and PayPal will now be the engine powering those payments for two of the nation’s premier conferences.
The new system, set to roll out this summer to coincide with the settlement taking effect on July 1, will enable athletic departments to disburse funds directly and securely to students.
“We’re proud to help lead this transformation in college athletics by making it easier and faster for student-athletes to get paid,” PayPal President and CEO Alex Chriss said in a statement. The deal also integrates PayPal further into campus life, as students will be able to use the service to pay their tuition at select schools.
This partnership is expected to be just the beginning. Big 12 Commissioner Brett Yormark told CNBC that he expects other conferences will quickly follow suit. “I was told last night, the ACC is up next,” Yormark said, suggesting a nationwide rollout is imminent. The move positions PayPal at the center of a seismic shift in the multi-billion dollar college sports industry.
