Synchrony (SYF), Skipify to Ease Online Shopping Experience
Synchrony Financial SYF teamed up with the California-based renowned financial technology company, Skipify, in a bid to streamline the online checkout experience for SYF’s cardholders. Notably, Synchrony pursued a strategic investment in Skipify via Synchrony Ventures, the arm that makes investments to enable startups to develop products and services powered by SYF’s ecosystem.
As part of the partnership, Synchrony Mastercard will be added to the digital wallet of Skipify, Connected Wallet. The embedded digital wallet boasts the capability of automatic identification of Synchrony cardholders on the website of a merchant. Following this, the payment details are immediately filled and the available cards appear, get immediate access to points, rewards as well as to SYF’s financing solutions.
Subsequently, the payment infrastructure of Skipify will be utilized to offer a hassle-free and improved shopping experience for Synchrony cardholders. At the same time, it also assures to bring about increased authorization and conversion rates as well as a higher degree of security for SYF merchants.
The leading consumer finance company understands the need for investments in innovation and technology, owing to the widespread adoption of digital means across every sphere of life and the associated risks that crop up with digital payments. Therefore, making the Skipify platform available for merchants, which keeps the payment credentials embedded, and shields consumers and merchants from significant losses incurred in case of fraud, seems to be of utmost importance.
Moves similar to the latest one are likely to cement solid customer relationships for Synchrony, which in turn, may lead to bolstered credit lines, higher repeat sales and a greater customer lifetime value. SYF boasts a differentiated and digitally enabled product suite, which it has built through buyouts, partnerships or technology investments. The digital prowess has often fetched new program agreements to it or renewed existing ones.
The power of Synchrony’s digital capabilities is substantiated by the fact that around 58% of SYF’s consumer-revolving applications were processed using a digital channel in 2023.
In January 2024, SYF announced the pursuit of a browser extension test, which makes use of an automatic prompt to use a Synchrony credit card at the time of the checkout and make seamless digital payments.
Shares of Synchrony have jumped 50.4% in the past year compared with the industry’s 21.3% 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 Federated Hermes, Inc. FHI, Ameriprise Financial, Inc. AMP and PennyMac Financial Services, Inc. PFSI. Federated Hermes currently sports a Zacks Rank #1 (Strong Buy), and Ameriprise Financial and PennyMac Financial carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of Federated Hermes outpaced estimates in each of the last four quarters, the average surprise being 6.46%. The Zacks Consensus Estimate for FHI’s 2024 earnings suggests an improvement of 7.1%, while the consensus mark for revenues suggests growth of 2.5% from the respective year-ago reported figures. The consensus mark for FHI’s 2024 earnings has moved 1.1% north in the past 30 days.
Ameriprise Financial’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 1.53%. The Zacks Consensus Estimate for AMP’s 2024 earnings suggests an improvement of 12%, while the consensus mark for revenues suggests growth of 7.1% from the respective year-ago reported figures. The consensus mark for AMP’s 2024 earnings has moved 1.5% north in the past 60 days.
The bottom line of PennyMac Financial outpaced estimates in two of the last four quarters, matched the mark once and missed the same in the remaining one occasion, the average surprise being 8.63%. The Zacks Consensus Estimate for PFSI’s 2024 earnings suggests a surge of 94.3% while the consensus mark for revenues suggests growth of 37.4% from the respective year-ago reported figures. The consensus mark for PFSI’s 2024 earnings has moved 8.6% north in the past 60 days.
Shares of Ameriprise Financial and PennyMac Financial have gained 298.4% and 53.1%, respectively, in the past year. However, the Federated Hermes stock has declined 8.6% in the same time frame.
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Ameriprise Financial, Inc. (AMP) : Free Stock Analysis Report
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Federated Hermes, Inc. (FHI) : Free Stock Analysis Report
