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Synchrony Expands Credit Reach With New PayPal Credit Card

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Key Takeaways

  • SYF launched a new credit card with PayPal, enabling PayPal Credit use in-store and wherever Mastercard works.
  • The card offers six months of promotional financing on travel buys, with no minimum spend required.
  • The move supports SYF's strategy to diversify and integrate credit into fast-growing digital platforms.

A prominent player in the consumer financing space, Synchrony Financial (SYF - Free Report) recently issued a new physical credit card in collaboration with PayPal. This new card allows users to access PayPal Credit not only online but also in-store and anywhere Mastercard is accepted.

The card includes a limited-period offer for its customers — six months of promotional financing on travel purchases with no minimum spend. From flights, cruises, ride shares or hotels, users can now manage huge travel expenses with ease, spreading out payments without worrying about their budget. Along with the limited-time travel deal, customers can still take advantage of six months of promotional financing on purchases of more than $149.

With the growing consumer interest in alternative financing options and Buy Now, Pay Later (BNPL) solutions, the introduction of a new physical card offers users more ways to pay while making the most of their existing credit lines. Additionally, allowing PayPal Credit to be used at point-of-sale terminals puts pressure on both banks and BNPL players.

This launch strengthens SYF and PayPal’s long-term relationship as it aligns with their strategies. Synchrony’s strategic focus on diversifying its portfolio and integrating its credit products into rapidly growing digital ecosystems is supported by PayPal’s vast user base. PayPal reported 436 million active accounts in the first quarter of 2025. This expansion may boost payment volumes and customer retention.

SYF is actively expanding its presence through partnerships and collaborations, which will likely improve its active accounts. In the first quarter of 2025, its purchase volume fell 4% year over year to $40.7 billion.

SYF Stock Price Performance

Over the past year, Synchrony shares have gained 37.9% compared with the industry’s rise of 8%.

Zacks Investment Research
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SYF’s Zacks Rank & Key Picks

SYF currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader finance space are Pagaya Technologies Ltd. (PGY - Free Report) , Heritage Insurance Holdings Inc. (HRTG - Free Report) and Acadian Asset Management Inc. (AAMI - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Pagaya Technologies’ current-year earnings of $2.45 per share has witnessed two upward revisions in the past 30 days against none in the opposite direction. Pagaya Technologies beat earnings estimates in two of the trailing four quarters and missed twice, with the average surprise being 12.9%. The consensus estimate for current-year revenues is pegged at $1.2 billion, implying 19.9% year-over-year growth.

The Zacks Consensus Estimate for Heritage Insurance’s current-year earnings of $3.25 per share has witnessed two upward revisions in the past 30 days against no movement in the opposite direction. Heritage Insurance beat earnings estimates in each of the trailing four quarters, with the average surprise being 363.2%. The consensus estimate for current-year revenues is pegged at $854.9 million, calling for 4.6% year-over-year growth.

The Zacks Consensus Estimate for Acadian’s current-year earnings is pegged at $2.86 per share, implying 3.6% year-over-year growth. In the past 30 days, Acadian has witnessed one upward estimate revision against none in the opposite direction. The consensus mark for the current-year revenues is pegged at $526.8 million, calling for 4.2% year-over-year growth.

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