Synchrony Financial
| Company type | Public |
|---|---|
| Industry | Consumer financial services |
| Predecessor | GE Capital Retail Finance Corporation |
| Founded | 2003 |
| Headquarters | Stamford, Connecticut , United States |
Area served | United States |
| Products | Credit cards, promotional financing options, loyalty programs, installment loans, FDIC-insured savings accounts |
| Website | www |
Synchrony Financial is a U.S.-based consumer financial services firm headquartered in Stamford, Connecticut, United States. It offers a range of consumer financing solutions, including credit cards, promotional financing options, loyalty programs, installment loans, and FDIC-insured savings accounts via Synchrony Bank, its fully owned digital banking subsidiary.
History
The company was initially incorporated in Delaware in 2003 under the name GE Capital Retail Finance Corporation but remained dormant until 2013. Concentrating on co-branded credit card products, the firm went public in July 2014, successfully raising $2.88 billion through its initial public offering.
Recent corporate history
In 2017, Synchrony enhanced its digital commerce capabilities by acquiring GPShopper. The following year, it expanded further through the acquisition of Loop Commerce, recognized for its patented digital gifting platform GiftNow. Also in 2018, Synchrony secured PayPal’s $7.6 billion credit receivables portfolio, establishing Synchrony Bank as the exclusive issuer for PayPal Credit’s U.S. point-of-sale financing program through 2028. Concurrently, PayPal renewed its co-branded credit card partnership with Synchrony for the same duration.
In 2020, several consumer advocacy organizations called for regulatory scrutiny of PayPal Credit’s use in tuition payments at for-profit educational institutions, highlighting concerns about steep 24% interest rates, $40 late fees, and aggressive debt collection practices deemed "predatory."
Synchrony owns CareCredit, the leading medical credit card provider in the United States. In May 2024, a class action lawsuit was filed alleging that CareCredit’s interest rates of 32.99% breach state usury statutes.
Regarding ownership stakes, Singapore’s sovereign wealth fund GIC Private Limited held a 7.72% share in Synchrony as of 2019 but had divested by 2023.
Products and technology
As the foremost U.S. issuer of private-label credit cards, Synchrony partners with prominent brands such as Amazon, Lowe's, Guitar Center, Cathay Pacific, Rakuten, Verizon, Sleep Number, Walgreens, and Sam's Club. These collaborations contribute significantly to Synchrony’s dominant position in consumer financing.
The company maintains four Innovation Stations located in Stamford, Connecticut; Chicago, Illinois; Kettering, Ohio; and Hyderabad, India. These centers drive business expansion through technological advancement and product development.
Public-private partnerships
Synchrony has cultivated strategic alliances with academic institutions to promote advancements in technology and cybersecurity. In 2016, it launched the Synchrony Center of Excellence in Cybersecurity at the University of Connecticut’s School of Engineering.
Continuing its focus on emerging technologies, Synchrony inaugurated a technology center at the University of Illinois in 2018 dedicated to artificial intelligence initiatives. In 2019, the company opened the Synchrony Digital Technology Center on the University of Connecticut’s Stamford campus and contributed $1 million to support economically disadvantaged students via the "Connecticut Commitment" program.
These collaborations underscore Synchrony’s dedication to innovation and corporate social responsibility while strengthening its competitive positioning and influence within the market.
Settlements
In June 2014, shortly before Synchrony’s initial public offering on the New York Stock Exchange, the U.S. Consumer Financial Protection Bureau along with the Department of Justice reached a settlement with the company totaling $225 million. This agreement targeted unfair and biased credit card practices that occurred while the company operated as GE Capital Bank, specifically concerning deceptive enrollment methods for supplementary services such as financial hardship assistance programs.