Synchrony's (SYF) CareCredit Offers Pet Care Financing Option
Synchrony Financial SYF recently announced its partnership with the University of Missouri, Oregon State University and Virginia Tech to offer financing options for pet care in the schools’ veterinary university hospitals. The tie-up will pave the way for SYF’s CareCredit health and wellness credit card and offer pet financing solutions in more than 95% of veterinary university hospitals nationwide. The company’s shares gained 1.5% on Sept 14.
This move bodes well for Synchrony Financial, as wider adoption of CareCredit is expected to boost the top line in the future. With SYF’s CareCredit expansion, it is evident that the company is focused on expanding the business with attention paid to health systems. Health and Wellness accounted for 16% of the total interest and fees on loans of SYF in the second quarter of 2023. This move will also lead to increased contributions from this segment and a rise in the loan receivables portfolio, paving the way for higher interest income and fees on loans. The company expects loan receivables growth of more than 10% in 2023.
Synchrony Financial’s CareCredit will provide flexible financial solutions to pet owners and educate veterinarians about mental health and wellness techniques, management of finances, financial literacy, etc. Pet parents can check if they prequalify for a CareCredit credit card without impacting their credit score in real time. They can apply on any smart device or over their phone. Once approved, pet parents can make the payment immediately. Short-term and long-term promotional financing options will be available depending on the purchase amount.
Partnerships similar to the latest one are expected to boost the presence of CareCredit across the pet care space. Expanding the reach of CareCredit financing solutions also bolsters the purchasing power of consumers and reduces hurdles for patients in availing of quality health care. SYF pursues uninterrupted efforts to offer advanced credit products best suited to address evolving customer expectations and serve diversified industries.
Shares of Synchrony Financial gained 10.7% in the past six months compared with the industry’s 4.7% rise. SYF currently carries a Zacks Rank #3 (Hold).
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