The deal helps Affirm scale in-store and online volume and push back against Klarna’s fast-growing debit card play.

Consumers expect flexible financing options during their shopping journey, especially for big-ticket items, per a report from Synchrony’s Major Purchase Study. Advertising financing is essential, but making it easy for consumers to access is even more important. Simplifying checkout through one-click buy buttons or QR code scans in-store can streamline users’ experience for high pressure purchases and drive loyalty to those retailers for making the process painless.

Synchrony reported $1.1 billion in net earnings during Q3 2025—a notable increase from Q4 2024’s $789 million, while net revenues were flat at $2.8 billion YoY, per a press release. Buy now, pay later platforms like Klarna, Affirm, and PayPal have an opportunity to pick off consumers from co-brand and private label issuers as the holiday season approaches. While these cards often boast high interest rates, PayPal’s in-store eligible Pay Monthly offers 5% cashback, and Affirm’s 0% interest days likely connect with Gen Zers trying to avoid revolving credit. As long as these fintechs can offer more competitive interest rates, installment plans, or rewards, co-brand cards are caught on the back foot for securing this consumer segments’ loyalty.

The news: Synchrony’s net revenues fell 2% YoY in Q2 2025, per its earnings release. Our take: Synchrony came off of a rocky Q1 2025 but locked down significant deals over the course of Q2 that will help drive growth through the rest of the year.

The news: Walmart’s OnePay and Synchrony will issue a new co-brand Mastercard and a private-label card. Our take: The massive retailer’s connectivity between its customer base, supplier relationships, and financing apparatus positions OnePay to be a disruptor on the scene.

The issuer’s confidence in its cardholders and business could be upended by tariffs

The large card program is in flux, with both its issuer and network partnerships up for grabs

They have higher customer satisfaction rates, adding to the competitive pressures

Through a tie-up with FIS, issuers can integrate Affirm's BNPL solution into their debit card programs

Partnerships, non-card payments, and value-added services will help offset potential losses from the Capital One-Discover merger

The issuer faces rising charge-offs, slowing volume growth, and declining active accounts

Given the success of its long-standing Sam’s Club card, the issuer could be in the running to restart Walmart’s program

A rewards integration coming later this year could make Synchrony a more attractive co-brand partner

Airline and hotel co-brand credit cards are contending with shifting travel spending trends and rising competition from general travel cards. Tapping into Gen Z’s love of experiences and exclusivity can help them stand out in a crowded field.

Partnership negotiations will have to deal with the program’s list of hurdles

While this move can save banks millions, customers aren’t ready for the change

The issuer wants concessions from Apple to protect it from some of the issues Goldman Sachs has dealt with

Acquirers, networks, and issuers each play distinct roles in the payments purchasing chain. But those roles are shifting as providers adapt to the rise of software and value-added services, increased payment method choice, and cloud-based innovation.

Despite intensified payment competition and rocky economic factors, private label credit cards will maintain their importance in the payments industry in 2023. Retailers should not discount the value they can bring in terms of revenues and loyalty.

Issuers are bracing for a recession to take a toll on charge-off rates, merchant fee revenues, and interest income. But have they fully baked in the economic threats consumers face?