Big Ten and Big 12 Enter Historic Partnerships with PayPal to Enable Institutional Payments for Student-Athletes in New Revenue Sharing Model

Core Insights - PayPal has entered multi-year agreements with the Big Ten and Big 12 Conferences to modernize the distribution of institutional payments to student-athletes through a new revenue-sharing model [1][2][3] - The initiative aims to provide a secure, efficient, and transparent method for athletic departments to dispense payments, enhancing the financial experience for student-athletes [1][4] - Venmo will play a significant role in campus life, expanding its commerce capabilities and becoming a preferred payment partner for tuition payments at select schools [4][5][6] Company Initiatives - PayPal will facilitate institutional payments to student-athletes, allowing them to access funds through their PayPal wallets for various purchases, including event tickets and textbooks [1][3] - Venmo is enhancing its presence on college campuses by sponsoring major athletic events and enabling real-world campus spending, including at bookstores and for ticketing [5][8] - The first phase of the rollout for institutional payments is expected to begin in summer 2025, with tuition payments through PayPal anticipated to launch in early 2026 [9] Market Impact - The partnerships with the Big Ten and Big 12 Conferences are expected to revolutionize college sports by allowing direct revenue sharing with student-athletes [2][4] - Venmo's user base, with over 64 million monthly accounts in the U.S., positions it well to become integral to student financial transactions on campuses [7] - The collaboration is set to empower student-athletes and enhance their financial management through a trusted platform they are already familiar with [4][6]