STAMFORD, Conn. — Synchrony Financial said its “Pay Later” offering is lifting merchant sales without undercutting its core credit card business, as the consumer lender reported record fourth-quarter purchase volume and pushed back against proposed caps on credit card interest rates.
Synchrony offered Pay Later at more than 6,200 merchants at year’s end and said sales rise by at least 10% on average when the installment option is paired with revolving credit. Executives said customers using Pay Later are incremental rather than substitutive, with no cannibalization of private-label or co-branded card programs.
‘Strong Entry Point’
“Pay Later is proving to be a strong entry point,” CEO Brian Doubles said on a conference call with analysts, adding that repeat usage is beginning to emerge even though many customers start with a single purchase. Over time, the company aims to migrate those customers to revolving credit products.
Synchrony reported it closed 2025 with fourth-quarter purchase volume of $49 billion, a company record and a 3% increase from a year earlier, according to results released Tuesday. Co-branded and dual cards led growth, accounting for about half of quarterly purchase volume and rising 16% year over year.
Doubles said consumer spending remained steady across income levels, with both transaction frequency and average ticket sizes increasing. “We’re not really seeing any signs of weakness,” he said.
Digital Purchase Volume Up 6%
Digital platform purchase volume rose 6% in the quarter, while health and wellness spending increased 4%, driven by pet care and audiology. Lifestyle purchases gained 3%. Home and auto spending slipped 2%, reflecting more selective home improvement activity despite higher average ticket sizes.
Synchrony also reported gains in digital engagement, with total digital visits up 18% in 2025 and sales through digital channels rising 17% after upgrades to its marketplace, website and mobile app. The company more than doubled the number of unique accounts provisioned in digital wallets.
Executives pointed to investments in artificial intelligence-driven search, mobile wallet integration and platform connectivity as helping surface financing options earlier in the shopping process.
Fast-Growing Walmart Program
Walmart, which launched a new program with Synchrony in September, was described by Doubles as the company’s fastest-growing program ever and a meaningful contributor to its outlook for mid-single-digit receivables growth in 2026.
Synchrony’s management also criticized proposals to cap credit card annual percentage rates at 10%. Doubles said such limits would shrink credit availability, particularly for lower-income consumers, and pressure merchants.
“A cap would require issuers to significantly reduce the amount of credit they’re able to provide,” he said, noting that Synchrony supports roughly 400,000 small and midsized businesses.
Chief Financial Officer Brian Wenzel said net charge-offs have returned to the company’s long-term target range of 5.5% to 6%, with delinquency rates improving, and said loan growth is expected to accelerate as new programs mature.
