PayPal Inks NIL Revenue-Sharing Deals With Big Ten, Big 12 for Student Athletes

PayPal Holdings Inc. announced on June 26 multi-year agreements with two of the nation’s “power conferences” that will update its revenue-sharing payments to student athletes, just weeks after a recent federal court decision approved a settlement for name, likeness, and image (NIL) compensation.

The digital payment and e-commerce giant said its agreements with the Big Ten and Big 12 Conferences will “revolutionize” the way institutional payments are distributed from universities to student athletes through a new revenue-sharing model.

“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,” Alex Chriss, president and CEO of PayPal, said in a statement.

On June 6, U.S. District Judge Claudia Wilken approved a proposed settlement agreement between the NCAA, the Power Five Conferences, and student athletes, effectively paving the way for NIL payments for college competitors.

Besides the Big Ten and Big 12, the former Power Five conferences have now contracted to the four most influential NCAA athletic alliances that generate the most revenue. The current Big Four model now also includes the Atlantic Coast Conference (ACC) and Southeastern Conference (SEC), all recognized as power conferences.

The PayPal deal with the Big Ten and Big 12 takes place nearly five years after student athletes filed a class-action lawsuit for alleged violations of the Sherman Act related to horizontal price fixing and unlawful restraint of trade.

Under the settlement, the NCAA will pay nearly $2.8 billion in back pay to former and current student athletes, while also establishing a way for schools to share billions in revenue with athletes over the next 10 years.

As part of the new deal, Venmo will also collaborate with the Big Ten and Big 12 to provide students with an avenue for on-campus spending, including at bookstores, ticketing services, concessions, and college merchandise. Venmo, owned by PayPal, is a mobile-first payment service designed for small fund e-commerce payments and cash transfers.

The initial phase of the PayPal service rollout is expected to start this summer, enabling student athletes to begin receiving institutional payments from their schools. Venmo will roll out college conference sponsorships for the 2025–2026 academic year, beginning with football season and on-campus events. Tuition payments through PayPal are scheduled to start in early 2026.