PayPal has entered a significant agreement with two major NCAA conferences: the Big Ten and the Big 12, to facilitate compensation for student-athletes via its platform.

According to CBS Sports, PayPal will pay nearly $100 million over five years to the Big 12. While the exact figure for the Big Ten was not reported, given its more prestigious status with additional schools, it is likely a higher amount.

The company also highlighted that students at certain colleges can use PayPal to pay their tuition. This is separate from direct athlete compensation but provides PayPal an added edge in encouraging institutions to accept PayPal for tuition payments.

Brand Visibility and Competitive Positioning

This move positions PayPal as a national competitor to Visa and Mastercard in the financial services sector. For instance, when a Big Ten school like Ohio State secures a top recruit, they can now present them with an oversized debit card featuring the PayPal logo instead of a traditional giant cardboard check.

Alex Criss, CEO of PayPal, was tasked to restore the brand’s leadership in financial services,” noted Don Apgar from Javelin Strategy & Research. This partnership is akin to what Visa and Mastercard do with high-profile sponsorships to boost brand awareness.”

PayPal had been pursuing college football partnerships since last year, attempting to secure naming rights for the Big 12.

Expected Further Partnerships and Court Settlement Impact

The agreements follow a recent court settlement that allowed schools to begin compensating student-athletes. Under this agreement, individual institutions can distribute up to $20.5 million annually to current athletes over the next year, along with up to $2.8 billion in back pay for former players.

Brett Yormark, Big 12 Commissioner, told CNBC that he anticipates other conferences will soon follow PayPal’s lead. The Southeastern Conference and Atlantic Coast Conference remain the only major college football power conferences yet to partner with PayPal.