Payments company, PayPal will sell its U.S. consumer loan portfolio to Synchrony Financial.

Yesterday, the San Jose, Calif-based PayPal said it agreed to sell $5.8 billion in consumer credit receivables to Stamford, Conn-based Synchrony Bank, a unit of Synchrony Financial.

Synchrony Bank has been PayPal’s banking partner since 2004.

In addition to selling its credit portfolio, PayPal is also selling Synchrony $1 billion in participation interests receivables held by some investors and a chartered financial institution.

In a statement to Reuters, PayPal CEO Dan Schulman said:

Our expanded relationship with Synchrony Financial will free up cash currently used to fund consumer credit receivables for other uses.

Read more at Reuters and American Banker.