Synchrony Financial Enhances Apple Pay with New Pay Later Feature
Synchrony Financial (SYF) has introduced a new feature for eligible cardholders with the Synchrony Preferred Mastercard, Synchrony Plus World Mastercard, or Synchrony Premier World Mastercard. Customers can now choose to pay later at checkout, allowing them to opt for a promotional fixed monthly payment plan instead of traditional credit card terms.
How It Works for Cardholders
To access this feature, cardholders need to add their Synchrony Mastercard to Apple Wallet. When purchasing online or through an app on their iPhone or iPad, they can select their card and choose the Pay Later option if eligible. This gives them the chance to review various promotional offers before completing their purchase smoothly and quickly through Apple Pay.
Security and Upcoming Features
Apple Pay provides a secure and private payment process. When using Synchrony Mastercard, customers’ transaction details remain private since Apple does not retain any purchase information. Synchrony also plans to expand this Pay Later feature to more Apple Pay users later in the year, allowing cardholders to view and redeem rewards at checkout on their devices.
Synchrony’s Strategy Behind This Initiative
Synchrony’s primary aim with this announcement is to increase customer choice and convenience during checkout. The introduction of fixed payment options could empower consumers by enhancing their purchasing power without the pressure of lump-sum payments, making budgeting easier for many.
Impact on Customer Engagement
Offering simplified digital payment options may attract new users and help retain existing ones. As more customers use Synchrony credit cards, the company could see an increase in revenues from interest and fees, which rose 10.5% year-over-year during the first nine months of 2024.
Synchronization with Digital Trends
Synchrony has built a solid reputation based on its digital capabilities. Through strategic partnerships and technology investments, the company has established numerous agreements with leading retailers, enhancing its position in the market.
Stock Performance Overview
Synchrony’s stock has surged by 89.6% over the past year, while the industry has seen a 24.5% increase. Currently, SYF holds a Zacks Rank of #3 (Hold).
Image Source: Zacks Investment Research
Stocks to Watch in the Finance Sector
Investors might also consider stocks such as Intercorp Financial Services Inc. (IFS), Ameriprise Financial, Inc. (AMP), and Civista Bancshares, Inc. (CIVB). Currently, Intercorp Financial Services has a Zacks Rank of #1 (Strong Buy) while Ameriprise Financial and Civista Bancshares both hold a Zacks Rank of #2 (Buy).
Earnings Outlook for Competing Stocks
Intercorp Financial Services has consistently surpassed earnings estimates recently, with an average surprise of 36.17%. The consensus forecast suggests a 48.2% earnings growth in 2025 compared to 2024. Similarly, Ameriprise Financial has outperformed in earnings estimates with a projected 14.6% increase in 2025 earnings. Civista Bancshares also reported earnings that beat forecasts with an expected growth of 8.2% in 2025.
Over the past year, shares of these companies performed well, with Intercorp gaining 28.2%, Ameriprise increasing by 45.8%, and Civista up by 21.8%.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
