Synchrony buys firm that lets merchants 'say yes' more often

Core Insights - Synchrony Financial has acquired Versatile Credit, a fintech company that enables retailers to offer credit to consumers with poor credit histories, enhancing the credit options available to over 400,000 merchants [1][8] - The acquisition aims to address the frustration merchants face when unable to provide credit at the point of sale due to consumers' low credit scores, thereby increasing sales and customer loyalty [2][4] Company Overview - Synchrony Financial, based in Stamford, Connecticut, partners with a diverse range of merchants, from large retailers to small businesses, to provide co-branded credit cards and consumer credit solutions [1] - The company has over $119 billion in assets and has been part of Versatile Credit's lender network for 15 years [4] Versatile Credit's Functionality - Versatile Credit matches consumers with lenders willing to extend credit, facilitating communication between merchants, lenders, and consumers quickly at the point of sale [2][5] - The fintech has integrated a system that connects nearly 35 lenders, allowing merchants to choose based on their specific needs [5] Market Trends - There is a growing consumer expectation for credit availability, even among those with poor credit histories, driven by the convenience of mobile credit options and buy now/pay later services [3][11] - The demand for consumer credit at the point of sale continues to rise, despite increasing household debt levels [11] Future Outlook - Following the acquisition, Versatile Credit will operate as a separate entity within Synchrony, maintaining its team and focusing on innovation [10][11] - Experts predict an increase in partnerships between fintechs and traditional lenders to streamline consumer transactions and reduce friction in the credit process [8][12]