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Synchrony Financial's CareCredit Ties Up to Spur Card Access

Zacks Equity Research

Synchrony Financial’s SYF sales platform CareCredit has collaborated with Walgreens that boosts CareCredit’s chain of more than 230,000 healthcare providers and retailers across the nation via the acceptance of the CareCredit credit card. By means of this pact, above 8500 Walgreens and Duane Reade stores will be added to the United States, Puerto Rico and Virgin Islands geographies, thereby facilitating customers with more locations so that they can use the card for wellness and health-related expenses.

This unique Synchrony solution allows customers to avail of the healthcare when they want and pay back for the same over a time frame pertaining to deductibles, co-pays, co-insurance and out-of-pocket medical expenses like prescriptions. This move is in line with the company’s strategy to enhance CareCredit acceptance through a unique service for convenient processing of CareCredit transactions at Walgreens.

CareCredit helps providers receive payments within two business days of accepting the card for transaction. If the patients delay in making the payment, they don't have to face any kind of financial obligations.

This solution is expected to provide CareCredit cardholders with more feasibility when it comes to incurring their daily and sudden medical expenses.

The company has consistently put in efforts for CareCredit network expansion. In March 2019, it also purchased Pets Best to drive its CareCredit platform and enter the pet insurance business as a managing general agent. In the same month, the company announced that its credit card Synchrony Car Care strengthened its acceptance network of merchants by more than 10 times to include more auto-related categories and destinations.

Acquisitions and collaborations have always been the company’s primary growth trajectory. The inorganic initiatives have improved its digital capabilities and diversify its business.  Synchrony Financial has been successful in revising several alliances over the last few quarters as well. All these integrations aim at proliferating the company’s business lines that in turn augment its competitive edge.

Shares of this Zacks Rank #3 (Hold) company have gained 5.5% in a year's time against its industry's decline of 2.3%.

Stocks to Consider

Investors interested in the same space might take a look at some better-ranked stocks like Fiserv, Inc. FISV, Visa Inc. V and Cardtronics PLC CATM. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Fiserv and its units provide financial services technology worldwide. It sports a Zacks Rank #1 and managed to pull off average four-quarter positive surprise of 0.6%.

Visa works as a payments technology company across the globe. It carries a Zacks Rank #2 (Buy) and managed to deliver average positive surprise of 3.4%.

Cardtronics offers automated consumer financial services through its network of automated teller machines and multi-purpose financial services kiosks. The company came up with average four-quarter beat of 37.5% and flaunts a Zacks Rank of 1.

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