Synchrony Financial and Atlanticus Holdings announced an expansion of their existing partnership Wednesday (June 26) creating a new multiyear agreement that aims to broaden financing options for consumers and merchants.
Atlanticus — parent company of the Fortiva brand — becomes the preferred provider of second-look financing for Synchrony’s private label credit cards and installment loan products.
Florin Arghirescu, senior vice president and chief product officer at Synchrony, told PYMNTS that the “enhanced” partnership is strategically important to his company, emphasizing the necessity of considering all three key parts of Synchrony’s ecosystem when developing solutions: partner banks, consumers and merchants.
“Given Synchrony’s position in the market, with over 71 million active customers and 460,000 merchant locations, we have to look at solutions from both a consumer perspective and a merchant side,” Arghirescu said. “We were doing this well, but there was room for improvement to do this great.”
The decision to deepen the partnership with Atlanticus was driven by extensive market research and merchant feedback. Arghirescu said Synchrony recently surveyed its merchant base and found a need for what he called multisource financing.
“What we learned is that our merchants really wanted Synchrony to provide an integrated program because it helps from both a merchant onboarding and underwriting perspective, as well as for a seamless consumer application or overall experience,” he said.
A key aspect of the expanded partnership is the streamlined enrollment process for both merchants and consumers. For merchants, Arghirescu described the integration as “turnkey,” eliminating the need for separate underwriting and integration processes when working with a secondary lender. For example, if Synchrony signed up with a specific merchant, Atlanticus and its brands will be integrated into the overall ecosystem.
On the consumer side, Arghirescu emphasized a “fully integrated experience that starts with one app,” including features like mobile wallet provisioning and QR code presentation. This seamless integration aims to enhance the customer experience and simplify the application process.
The partnership aligns closely with Synchrony’s broader strategy of offering diverse payment solutions and expanding its product suite. Arghirescu highlighted the company’s focus on “unique experiences and relentless innovation” in how it displays its products, emphasizing omnichannel and digital capabilities.
A important component of this strategy is Synchrony’s commitment to installment loans and pay later options. “We continue to scale our pay later product, which is the Synchrony installment product. This really broadens the utility of our products,” Arghirescu said. He stressed Synchrony’s belief in the “power of choice,” offering installment products alongside traditional credit options to cater to diverse consumer needs.
Arghirescu also discussed recent innovations in product presentation, including a multiproduct prequalification process that presents consumers with options based on the products they qualify for. “We do see the buy now, pay later or installment product adjacent to our core products to be very powerful,” he added.
While the expanded partnership aims to serve consumers with thin credit files or those new to credit, Arghirescu was quick to clarify that it’s not necessarily indicative of broader economic conditions.
“The consumer is still very, very strong,” he stated, emphasizing that the partnership is more about providing credit utility to specific segments of the population, particularly those looking to build credit.
The collaboration is expected to benefit a wide range of Synchrony merchants, including small businesses, healthcare providers and retail partners. By offering a preferred second-look financing solution under the Fortiva brand, which includes general purpose and private label credit cards as well as installment loans, the partnership aims to help merchants grow by providing responsible financing solutions to a broader customer base.
For consumers who may not qualify for initial credit offers from Synchrony, the partnership provides an opportunity to receive instant second-look offers through Atlanticus’ program. Arghirescu said this approach aligns with Synchrony’s commitment to financial inclusion and responsible lending practices.
David Caruso, chief commercial officer at Atlanticus, expressed satisfaction with the deepened partnership, saying, “This collaboration enhances our ability to provide inclusive financial solutions, helping our merchant partners serve more customers effectively.”
The partnership also includes a provision for customers who demonstrate responsible usage and repayment behavior to potentially graduate to Synchrony credit products over time, further emphasizing the companies’ commitment to helping consumers build and improve their credit profiles. The collaboration is expected to not only increase Synchrony’s customer base but also provide Atlanticus with access to Synchrony’s extensive merchant network.
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