Synchrony and LG Air Conditioning Technologies to Develop Private-Label Credit Card

Synchrony and LG Air Conditioning Technologies have partnered to help LG’s dealers offer financing to consumers.

The multiyear partnership of the consumer financing company and LG will create a private-label credit card program designed to help homeowners buy smart heating, ventilation and air conditioning (HVAC) products. The program and card will launch later this year, the companies said in a Thursday (April 20) press release.

“Synchrony provides us the opportunity to offer our dealers new promotions and solutions to help drive sales and reach new customers with more financing options,” LG Air Conditioning Technologies USA Senior Vice President and General Manager Steve Scarbrough said in the release.

PYMNTS research has found that one of the biggest appeals of store cards, whether private-label or co-branded, is that they typically provide shoppers with exclusive rewards, discounts and other perks.

Both private-label and co-branded cards present merchants with an opportunity to build customer loyalty and drive revenue, according to “White-Label Credit Usage Is on the Upswing in 2023,” the April edition of the “Credit Card Tracker® Series,” a PYMNTS and Discover Global Network collaboration.

The report found that nearly one-third of consumers will spend more with brands with which they have relationships.

LG’s new private-label credit card program will offer homeowners competitive deferred interest, fixed payment and equal monthly payment promotion offers, according to the press release.

For installers participating in LG’s HVAC Pro Dealer program, the new offering will provide access to reduced rates and frequent partnership promotions, the release said.

The financing program also offers an online application process and other digital capabilities, per the release.

“Purchasing or upgrading an HVAC system is a necessary but large investment,” Synchrony CEO of Home and Auto Curtis Howse said in the release. “Our goal at Synchrony is to make the process of that purchase as seamless as possible for customers and dealers alike.”

The announcement of this program comes about six months after Synchrony launched a solution for the healthcare sector called Allegro Credit, a point-of-sale (POS) consumer financing offering for the hearing industry.