Synchrony not doing so good.....

snickerpedia · ‎05-29-2020

https://finance.yahoo.com/news/synchrony-financial-syf-plunges-41-135901367.html

im sure they will recover though....eventually.

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Anonymous · ‎05-30-2020

Not surprising, I knew the loss of Walmart was going to hit them big considering they don't really have a similar portfolio to replace it. So no one can really know how much of it is attributed to Covid. When I look at their lineup nothing pops out at me as neccessary to have, not being fan of store cards. That's not to say i wouldn't mind having the Marvel card purely for aesthetic reason, and i imagine even the Amazon card could be useful here and there.

Then you add what seems to be more cases of ID/fraud and cxard closures and CLDs, thus creating people who either cannot use it or are afraid to use it.

Anonymous · ‎05-31-2020

@Anonymous wrote:
Not surprising, I knew the loss of Walmart was going to hit them big considering they don't really have a similar portfolio to replace it. So no one can really know how much of it is attributed to Covid. When I look at their lineup nothing pops out at me as neccessary to have, not being fan of store cards. That's not to say i wouldn't mind having the Marvel card purely for aesthetic reason, and i imagine even the Amazon card could be useful here and there.

Then you add what seems to be more cases of ID/fraud and card closures and CLDs, thus creating people who either cannot use it or are afraid to use it.

Having the Amazon card and Paypal in their portfolio will keep them afloat.

the would be VERY wise to make strides to increase medical providers who accept CareCredit. right now, its really only widely available at the dentist or the vet for your pets. If they can get care credit in all the major healthcare conglomerates, hospitals, and medical debt collectors thats an enormous line of business.

this country is saddled in medical debt and medical costs (mod cut-Im sorry this isnt allowed here at myFico, please refer to the TOS on the 5 things we do not discuss)

DaveInAZ · ‎05-31-2020

@Anonymous wrote:
Having the Amazon card and Paypal in their portfolio will keep them afloat.

the would be VERY wise to make strides to increase medical providers who accept CareCredit. right now, its really only widely available at the dentist or the vet for your pets. If they can get care credit in all the major healthcare conglomerates, hospitals, and medical debt collectors thats an enormous line of business.

this country is saddled in medical debt and medical costs ...

Well, Paypal is losing eBay as it's payment processor, ebay is switching to Dutch payment processor Adyen, the changeover expected to be completed by 2021 while PayPal will still be offered as a way to pay at checkout until July 2023. So Synch will take a hit on its PayPal credit cards. And I don't know how widespread it is but I was an early Amazon adapter but I've cut way, way back on buying from Amazon - I'd rather buy from and support local businesses and when I do buy online Amazon is often no longer the best price and Prime has become way too expensive unless you're heavily into Prime Video.

Synchrony is way too invested in store cards, they need to come out with attractive Visa/Mastercard products.

Anonymous · ‎05-31-2020

@Anonymous wrote:
Not surprising, I knew the loss of Walmart was going to hit them big considering they don't really have a similar portfolio to replace it. So no one can really know how much of it is attributed to Covid. When I look at their lineup nothing pops out at me as neccessary to have, not being fan of store cards. That's not to say i wouldn't mind having the Marvel card purely for aesthetic reason, and i imagine even the Amazon card could be useful here and there.

Then you add what seems to be more cases of ID/fraud and cxard closures and CLDs, thus creating people who either cannot use it or are afraid to use it.

Not really. They have Amazon which is huge as well as Paypal so losing Walmart while not good was not the end of the world for Synchrony. Now Covid on the other hand has put a serious hurting on them. As far as them having the best credit card products out there goes that's not really what they are going after in there partnerships with retailers. There business model is very very different from an issuer like American Express.

As a Shareholder I'm still planning on buying another 100 shares of the company's stock. They still payed out the dividend this month and haven't cut the dividend yet and I still think they will be successful going into the future so I'm looking at this a good buying opportunity personally. Although, I think DFS is better deal and will have less problems then SYF will have going forward due to the shutdowns affecting the economy.

Anonymous · ‎05-31-2020

@DaveInAZ wrote:
Well, Paypal is losing eBay as it's payment processor, ebay is switching to Dutch payment processor Adyen, the changeover expected to be completed by 2021 while PayPal will still be offered as a way to pay at checkout until July 2023. So Synch will take a hit on its PayPal credit cards.

Seriously, after how many years? lol At least I'll have a few more years to sue Paypal, but I ain't looking forward to a whole new payment system. Even when they stop acceptin PayPal at ebay though, the PP Master Card can be sued anywhere. So i don't see a big decline in apps for that reason.

While Amazon might be doing okay for them, one has to remember that there are other Amazon Credit Cards to choose from. Although the Amex one is a BIZ card. So it isn't exactly like SYNCH is getting 100% of Amazon shoppers.

With all these Mall type store outlet card they offer, it's only a matter of time before those become non usefull to he consumer with each passing BK in the news. Sure they can convert it to their standard Visa/MC product, but people wanted that plain jane they would have apped it in the first place.

Revelate · ‎05-31-2020

Different business model than Amex sure, and while Amex has the loss of travel which is going to hurt their revenue badly, Sync credit card customers are probably far more likely to be furloughed or laid off than the heavy Amex or Chase users.

I expect to see Sync bearing a higher default rate post forbearance than some other major lenders. It just isn't a stock that I would invest in, too many headwinds both for their customers and their clients/partners. Bad mojo.

Anonymous · ‎05-31-2020

@Revelate wrote:
Different business model than Amex sure, and while Amex has the loss of travel which is going to hurt their revenue badly, Sync credit card customers are probably far more likely to be furloughed or laid off than the heavy Amex or Chase users.

I expect to see Sync bearing a higher default rate post forbearance than some other major lenders. It just isn't a stock that I would invest in, too many headwinds both for their customers and their clients/partners. Bad mojo.

They will have more defaults compared to Amex that is true. Synchrony and Capital One both got hit hard by the shutdowns with Synchrony getting hit the hardest out of everyone due to their business model. Still they have been able to keep the dividend and their business model is still solid and I plan on grabbing more shares because based on the info I believe they going to do fine in the future...they are just getting beat up right now due to the shutdowns which no one a year ago saw coming.

As far as SYF being a stock you wouldn't invest in if that's how you feel then don't invest in them. I don't invest in companies that don't pay a dividend. I also don't invest in Tech, Retail, Automotive, Sin Stocks and travel and leisure stocks due to volatility and lack of interest.

Anonymous · ‎05-31-2020

@Anonymous wrote:
@DaveInAZ wrote:
Well, Paypal is losing eBay as it's payment processor, ebay is switching to Dutch payment processor Adyen, the changeover expected to be completed by 2021 while PayPal will still be offered as a way to pay at checkout until July 2023. So Synch will take a hit on its PayPal credit cards.
Seriously, after how many years? lol At least I'll have a few more years to sue Paypal, but I ain't looking forward to a whole new payment system. Even when they stop acceptin PayPal at ebay though, the PP Master Card can be sued anywhere. So i don't see a big decline in apps for that reason.

While Amazon might be doing okay for them, one has to remember that there are other Amazon Credit Cards to choose from. Although the Amex one is a BIZ card. So it isn't exactly like SYNCH is getting 100% of Amazon shoppers.

With all these Mall type store outlet card they offer, it's only a matter of time before those become non usefull to he consumer with each passing BK in the news. Sure they can convert it to their standard Visa/MC product, but people wanted that plain jane they would have apped it in the first place.

Considering they also have Ebay, Rakuten, Lowes, Sam's Club, Pep Boys, etc. It's not like all of there credit products are nothing but the stores only found in malls that are all going out of business. Synchrony Financial's product portfolio is extremely vast which they have built over decades back when they were GE capital before getting spun off into their own separate company. They are even still growing and making deals having completed a large one not to long ago with Discover Financial Services using the Discover payment network for Synchrony's Home Credit Card.

GApeachy · ‎06-01-2020

Synch's still dipping into the Walmart pond........Sam's club card and Care Credit cards can be used at Walmart for purchases. Also Care Credit can be used at Sam's Club now I see, besides Walmart, Walgreens and Rite Aid. Hopefully they'll add more flexibility to this card in the near future to include any personal care products in any grocery/supermarket store, or at least the big chains.

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