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The Big Ten and Big 12 conferences have entered a multi-year partnership with PayPal for the payments, the financial company announced on Thursday, June 26. The deal marks a major shift in how college athletes can monetize their careers in the era of name, image, and likeness (NIL) deals.
PayPal said it'll offer Big Ten and Big 12 schools a secure and efficient way to pay athletes directly.
"We're proud to help lead this transformation in college athletics by making it easier and faster for student-athletes to receive funds and continue to bring trusted and innovative commerce solutions to the heart of campus life," said PayPal president and CEO Alex Chriss. "From receiving institutional payments to making everyday purchases, we're helping student-athletes, families, and schools engage in new ways that are modern, secure, and built for the future."
The partnership comes as a landmark court ruling is about to go into effect that will further transform the financial landscape of high-level college sports. Earlier in June, the House v. NCAA settlement was finalized, allowing universities to directly pay their athletes.
Before the ruling, many teams have relied on brand sponsorships or NIL collectives to compensate athletes. Colleges can now pay current players up to $20.5 million annually, while the NCAA will give up to $2.8 billion in back pay to former athletes, according to CNBC.
Athletic departments will use PayPal's platform to send institutional payments, allowing athletes to instantly receive their money. They can spend those funds through PayPal's platforms, including for textbooks, tickets, or other campus purchases.
Big Ten commissioner Tony Petitti said teaming up with PayPal will make payments easier for players.
"We look forward to partnering with PayPal to ensure a secure, rapid and reliable way for student-athletes to receive institutional payments as we welcome in this new era in college athletics," said Petitti.
PayPal-owned Venmo will also become the main sponsor of the first-ever Big Ten Rivalry Series in football and basketball, along with becoming the official payments partner for Big 12 championships. Students will be able to use Venmo balances for ticketing, concessions, and bookstore purchases.
PayPal said student-athlete payments will begin rolling out in the summer. Tuition payments via PayPal are expected to launch at select schools in early 2026.
The House v. NCAA settlement officially goes into effect on Tuesday, July 1.
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