Synchrony Acquires Versatile Credit’s Credit Access Platform

Synchrony has acquired consumer financing software provider Versatile Credit.

The deal gives Synchrony access to the Versatile platform, which connects merchants, lenders and consumers via point-of-sale solutions, the company said Wednesday (Oct. 1).

“Synchrony intends to maintain Versatile’s business strategy, management structure and data integrity, serving numerous other lenders as well as their merchants and providers,” the company said in a news release. “Versatile will collaborate with Synchrony to accelerate the technology roadmap for consumer financing solutions.”

Ed O’Donnell, Versatile’s CEO, noted in the release that his company has worked with Synchrony for more than 15 years, and that the two firms shared the goal of offering shoppers “across the spectrum” multiple opportunities for credit access.

“We empower our partners with solutions to drive sales and growth while streamlining the user experience,” he said. “Joining Synchrony will enable us to bring our platform to more merchants and consumers.”

The release notes Versatile’s “deep capabilities” in the furniture, home improvement, automotive, jewelry and elective medical industries, with the company connecting the customers of merchants and healthcare providers with lending products across multiple prime, secondary and tertiary lenders.

“Additionally, Versatile’s detailed reporting capabilities and back-end integration with merchant systems are expected to enable Synchrony to bring new capabilities to meet the changing demands of its merchant and provider partners,” the release said.

PYMNTS spoke with O’Donnell earlier this year about the benefits merchants are deriving from pay-later options in a time of economic uncertainty.

His company, working with lenders to deliver financing options at the point of sale, has seen a “steady drumbeat” of merchants signing up to expand the payments choices they can give customers, who have spending power and credit “dry powder” to keep fueling commerce.

“We’ve seen recovery in the verticals where we play today,” he told PYMNTS CEO Karen Webster as part of the PYMNTS on Air event, “BNPL: Pay Later Unpacked.”

O’Donnell added that “consumers are still being intelligent about how they use financing — short-term financing and promotional financing — to help make the purchases that they feel they need to make or they want to make.”

That’s particularly true of younger consumers hoping to avoid interest payments that will transform a $1,000 purchase into a $3,000 transaction over several years.

Against that backdrop, said O’Donnell, no matter the kind of plan being offered, “people want certainty — especially in an environment where, economically, things are a bit uncertain. Planning is important and confidence is important — [and with pay later] you can create your own confidence within your own budget.”