Synchrony (SYF) to Issue Co-Branded Card for J.Crew Clients
Synchrony Financial SYF teamed up with the globally renowned omnichannel retailer, J.Crew Group, and the tech giant, Mastercard MA, to unveil a multi-year consumer financing program. Details about the expected transition to the new card program will be furnished by J.Crew Group to its customers in the months ahead.
The partners will collaborate to introduce a co-branded credit card in the first half of 2024, which can be utilized by the customer base of J.Crew Group across J.Crew and J.Crew Factory stores, online sites and mobile channels. J.Crew Group boasts its presence in almost every U.S. state, with 120 J.Crew retail stores and 215 J.Crew Factory stores as of Oct 28, 2023, thereby substantiating the widespread reach of the new card.
Per the terms of the partnership, Synchrony will act as the exclusive issuer of J.Crew And J.Crew Factory credit cards. SYF will purchase the current credit portfolio of J.Crew and will extend a comprehensive portfolio of digital expertise, such as mobile wallet provisioning, pre-approval capabilities and Scan to Apply, to the retailer.
The recent move also assures greater rewards and savings for J.Crew Group customers while making purchases outside of J.Crew network but the transaction has to be done across any Mastercard-accepted payment terminal.
Such partnerships reinforce the faith that organizations put on Synchrony to extend innovative payment solutions and address the diversified credit needs of their customers. The availability of a suitable financing solution, that removes the need to make lumpsum payments and does not exert pressure on one’s finances, may boost the purchasing power of consumers. All such efforts lead to a hassle-free purchase experience and attract newer partners as well as retain existing ones.
The well-earned reputation of SYF can be attributed to its digital and analytics expertise. A series of acquisitions and partnerships coupled with tech investments have strengthened the company’s digital arm. This, in turn, has fetched several program agreements with some of the nation’s leading retailers and manufacturers, and subsequently, boosts revenues derived from such agreements.
The list of partners is continually increasing for SYF. It added or renewed more than nine programs in the third quarter of 2023. This month itself, Synchrony announced offering tailored financing options for Big Brand Tire & Service’s customers at all of its U.S. locations and more than a million affiliated spots.
Shares of Synchrony have inched up 0.8% in the past six months compared with the industry’s 5.4% growth. SYF currently carries a Zacks Rank #3 (Hold).
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Stocks to Consider
Some better-ranked stocks in the Finance space are Federal Agricultural Mortgage Corporation AGM and Merchants Bancorp MBIN, 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 bottom line of Federal Agricultural Mortgage outpaced estimates in each of the last four quarters, the average surprise being 14.87%. The Zacks Consensus Estimate for AGM’s 2023 earnings suggests an improvement of 33.5% from the year-ago reported figure. The consensus mark for revenues suggests growth of 11.5% from the year-ago figure. The consensus mark for AGM’s 2023 earnings has moved 2.1% north in the past 30 days.
Merchants Bancorp’s earnings outpaced estimates in three of the trailing four quarters and missed the mark once, the average surprise being 8.28%. The Zacks Consensus Estimate for MBIN’s 2023 earnings and revenues suggest an improvement of 23% each from the respective year-ago figures. The consensus mark for MBIN’s 2023 earnings has moved 10.9% north in the past 60 days.
Shares of Federal Agricultural Mortgage and Merchants Bancorp have gained 22.7% and 47.7%, respectively, in the past six months.
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