Eligible Synchrony Mastercard Customers Now Have Access to the Pay Later Feature of Apple Pay

Rhea-AI Summary

Synchrony (NYSE: SYF) has announced that eligible Synchrony Mastercard holders can now access the Pay Later feature when using Apple Pay for online and in-app purchases on iPhone and iPad. Customers with Synchrony Preferred Mastercard, Synchrony Plus World Mastercard, or Synchrony Premier World Mastercard can choose between standard credit card terms or promotional offers with fixed monthly payments.

To utilize this feature, customers need to add their Synchrony Mastercard to Apple Wallet. When checking out with Apple Pay, eligible users can select their card and tap Pay Later to view promotional offers. The company plans to expand this payment flexibility across its co-branded card portfolio. Additionally, Synchrony will introduce the ability to view and redeem rewards from eligible Synchrony-issued cards when using Apple Pay later this year.

Positive

• Integration with Apple Pay expands payment flexibility for Synchrony cardholders
• Planned expansion of Pay Later feature across co-branded card portfolio indicates growth potential
• Future implementation of rewards redemption feature through Apple Pay enhances product offering

Negative

• initial availability to select Mastercard products only

Insights

Fintech Payment Systems Analyst

The integration of pay-later functionality into Apple Pay for Synchrony Mastercard holders represents a strategic expansion in the digital payments landscape. This move positions Synchrony to capture a larger share of the rapidly growing BNPL (Buy Now, Pay Later) market, currently dominated by players like Affirm and Klarna.

The implementation leverages Synchrony's existing credit infrastructure while tapping into Apple Pay's massive user base of over 500 million globally. This synergy could drive significant transaction volume growth, as BNPL options typically increase average order values by 30-50% and reduce cart abandonment rates by 20-30%. For context, the global BNPL market is projected to reach $3.98 trillion by 2030, growing at a CAGR of 45%.

The planned rewards integration feature later this year is particularly noteworthy - it addresses a key friction point in digital payments and could boost customer retention and spending. From a competitive standpoint, this gives Synchrony an edge over traditional card issuers who haven't yet integrated BNPL options into mobile wallets.

Consumer Banking Strategist

This product launch significantly enhances Synchrony's competitive positioning in the consumer credit space. The seamless integration with Apple Pay addresses two critical market demands: payment flexibility and digital convenience. The ability to offer promotional financing at the point of sale through Apple Pay creates a powerful customer acquisition channel, potentially reducing customer acquisition costs which typically range from $200 to $700 per credit card account.

Looking at the revenue implications, BNPL transactions generally command merchant fees of 4-6%, higher than traditional credit card interchange rates of 2-3%. This could translate to improved profit margins on a per-transaction basis. The planned expansion to more co-branded cards suggests confidence in the model's scalability and potential for driving incremental revenue growth across Synchrony's $95.6 billion credit portfolio.

STAMFORD, Conn., Jan. 16, 2025 /PRNewswire/ -- Synchrony (NYSE: SYF), a premier consumer financial services company, is enhancing the way consumers securely shop online and in-app when checking out with Apple Pay on iPhone and iPad. Eligible Synchrony Preferred Mastercard, Synchrony Plus World Mastercard, or Synchrony Premier World Mastercard holders can now choose to pay with the standard terms of their credit card, or use a promotional offer that includes fixed monthly payments.¹

To use a Synchrony Mastercard with Apple Pay, customers will first need to add their Synchrony Mastercard to Apple Wallet. When checking out with Apple Pay online or in-app using iPhone and iPad, users will be able to select their Synchrony Mastercard, and if eligible, tap Pay Later to view their available promotional offer. Users can then make a selection and complete the quick and seamless checkout process with Apple Pay.

"The ability for customers to choose fixed monthly payments in Apple Pay with the Synchrony Mastercard builds upon our leadership in digital payments and represents a big leap forward in offering our customers an enhanced level of flexibility and choice at checkout," said Florin Arghirescu, Chief Product Officer, Synchrony. "We believe this simplifies digital payment transactions and provides cardholders with the ability to make purchases in ways that work best for them." 

Apple Pay provides users with an easy, secure and private way to pay. As with all Apple Pay purchases, when a user pays with a Synchrony Mastercard with Apple Pay, Apple does not retain any transaction information linked to the user.

Synchrony plans to expand the ability to pay for eligible purchases with fixed monthly payments to more Apple Pay users across the company's portfolio of co-branded cards.

Later this year, consumers will also be able to view and redeem rewards from eligible Synchrony-issued cards when checking out online and in-app on iPhone and iPad with Apple Pay, bringing even more flexibility and choice to the checkout experience than ever before. 

About Synchrony 

Synchrony (NYSE: SYF) is a premier consumer financial services company delivering one of the industry's most complete digitally-enabled product suites. Our experience, expertise and scale encompass a broad spectrum of industries including digital, health and wellness, retail, telecommunications, home, auto, outdoor, pet and more. We have an established and diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers, which we refer to as our "partners." We connect our partners and consumers through our dynamic financial ecosystem and provide them with a diverse set of financing solutions and innovative digital capabilities to address their specific needs and deliver seamless, omnichannel experiences. We offer the right financing products to the right customers in their channel of choice. For more information, visit www.synchrony.com. 

1) When Synchrony Mastercard is used with Apple Pay online or in-app, the standard terms of the credit card agreement may apply (Pay In Full option) or a promotional financing offer may be available (Pay Later option).  Promotional Offers are only available for eligible well qualified cardholders.  Both options allow the purchase to be paid in full or over time.

Loans not offered by Apple. Subject to eligibility requirements and approval. Not available in all markets, and may not be available for all types of purchases, such as subscriptions and recurring transactions. Available with Apple Pay online and in apps, on iPhone or iPad. Not available in-store. Software requirements apply. Additional terms may apply. For more eligibility and feature details, see https://support.apple.com/120477 

Contact: Tyler Allen
Synchrony
tyler.allen@syf.com

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SOURCE Synchrony Financial

FAQ

Which Synchrony (SYF) cards are eligible for Apple Pay's Pay Later feature?

Synchrony Preferred Mastercard, Synchrony Plus World Mastercard, and Synchrony Premier World Mastercard are currently eligible for the Pay Later feature with Apple Pay.

How does the Synchrony (SYF) Pay Later feature work with Apple Pay?

Customers add their eligible Synchrony Mastercard to Apple Wallet, and when checking out with Apple Pay, they can tap Pay Later to view and select promotional offers with fixed monthly payments.

When will Synchrony (SYF) implement rewards redemption through Apple Pay?

Synchrony plans to implement the ability to view and redeem rewards from eligible Synchrony-issued cards through Apple Pay later in 2025.

Will Synchrony (SYF) expand the Pay Later feature to other cards?

Yes, Synchrony plans to expand the Pay Later feature with fixed monthly payments to more Apple Pay users across its co-branded card portfolio.