The market for consumer financing options continues to heat up as market leader Synchrony announces a new partnership with Fiserv that will integrate Synchony’s private label credit services with Fiserv’s Clover business management platform. Merchants using Clover point-of-sale stations will be able to add Synchony services via the Clover App Market, and once installed, Synchrony clients will be able to accept private label card payments as well as new applications for credit through their Clover terminals.
“This strategic partnership deepens Synchrony’s partner ecosystem and reinforces our growth strategy to expand and accelerate innovative product offerings through additional distribution channels,” said Michael Bopp, EVP and Chief Growth Officer, Synchrony. “It builds on our momentum to bring our products to merchants faster and leverages Synchrony’s leadership in financing, digital capabilities, and data and analytics. Fiserv is a long-term strategic Synchrony partner, and we’re excited to leverage the point-of-sale innovations driven by Clover to continue to transform the way people purchase while helping merchants grow.”
Synchrony’s revolving credit and short/long term installment options help merchants acquire new customers while offering financing options that make it easier for consumers to afford high-ticket or unexpected purchases such as vehicle repairs. Having this functionality directly integrated into the merchant’s point-of-sale business management platform makes it easy for merchants to manage and easy for consumers to use.
“Fiserv is committed to making it easier for small businesses to accept a broad range of payment methods, and to helping small business owners manage their business. Our partnership with Synchrony furthers that commitment by enabling merchants to accept private label card payments via Clover, streamlining the payment process and improving the customer experience,” said Devin McGranahan, Head of Global Business Solutions at Fiserv.
Despite the steady growth in branded general purpose credit/debit cards, consumers have been increasingly utilizing alternative financing options like Buy Now Pay Later (BNPL), private label credit, and other installment plans offered by merchants. While it’s clear that new payment options are driving sales, it’s less clear what the credit performance metrics on these portfolios will be as consumers go into repayment mode after the holiday shopping season.
Overview by Don Apgar, Director, Merchant Services Advisory Practice at Mercator Advisory Group
