Mahindra added Synchrony as its preferred lender earlier this month. Payment Solutions is Synchrony’s sales platform, in which it offers promotional financing for major consumer purchases. Synchrony offers private-label credit cards and financing programs for retailers, dealers, manufacturers, buying groups, and industry associations.
The reuse rate of Payment Solutions was 29% of total purchase volume in the first quarter ended March 31. Total purchase volume was $3.8 billion, up from $3.7 billion the same period the year prior. The number of active accounts also increased by 5% year over year to 9.5 million.
“An important objective is to extend the utility of our cards, which will move into the top of cardholders’ wallets and migrate cardholders towards more repeat purchase behavior,” Keane said on the call. “We have made substantial progress in improving the utility, and therefore, the usage of our cards as evidenced by our reuse rates.”
Synchrony signed a multi-year deal to provide consumer financing for Mahindra’s powersports division in the U.S. earlier this month. Synchrony will provide promotional financing options for new and used powersports vehicles and accessories to the OEM’s U.S. dealer base, while Mahindra will gain access to Synchrony’s financial tools, such as its Installment Loan Estimator.
Meanwhile, Payment Solutions delivered a strong first quarter, up 7.8% to $16.6 billion average loan receivables compared to the same time the year prior.