PayPal has completed the sale of its portfolio of $7.6bn consumer credit receivables to Synchrony for a total consideration of around $6.9bn.

The transaction included PayPal’s US receivables worth $6.8bn and about $800m in participation interests in receivables held by certain third parties.

At the same time, the companies also extended their current co-brand consumer credit card alliance till 2028. The move enables Synchrony to serve as the exclusive issuer of PayPal Credit online consumer financing programme in the US.

The two companies first collaborated in 2004 to offer PayPal-branded consumer credit cards.

Synchrony president and CEO Margaret Keane said: “This collaboration plays to both companies’ strengths in providing seamless digital payments and innovating for partners, merchants, and consumers.

“It also expands Synchrony’s leadership in consumer credit programmes. Together we can provide an enhanced customer experience for thousands of merchants and consumers.”

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PayPal president and CEO Dan Schulman added: “Our agreement with Synchrony accomplishes every goal we set out for our asset light strategy. We look forward to working with Synchrony to double down on our innovative consumer credit experiences for our customers and profitably grow the portfolio over time.”