Synchrony purchase volume hit $49.8 billion in the second quarter, up 8% from a year earlier, even as inflation, gas prices and affordability pressure kept the “tired consumer” story alive. That is the real signal in Synchrony’s latest readout: shoppers aren’t acting carefree, but they also aren’t retreating in the way sentiment narratives suggest.
The second-quarter results, reported Tuesday, July 21, show a consumer still swiping, borrowing and repaying with enough discipline to keep credit metrics stable, according to PYMNTS. For Synchrony, which sits across private-label cards, co-branded cards, retail financing, health, auto, home and digital commerce, that matters. Its card data captures behavior close to the checkout line.
“There’s this perception given gas prices and inflation that the consumer is going to bend or come under a lot of duress,” Synchrony CFO Brian Wenzel said. “Sales accelerated, even though gas prices are up, inflation was up, but [consumers] continue to spend.”
That doesn’t mean households feel flush. XOOMAR analysis: the better reading is adaptation. Consumers are still spending, but the details suggest they’re doing it more often, not simply buying bigger-ticket items.
Synchrony Purchase Volume Challenges the Consumer Pullback Story
The headline number is simple: purchase volume rose to $49.8 billion, from $46.1 billion a year earlier. Average active accounts barely moved, at 68.3 million versus 68.1 million last year. That combination is important.
If account growth had driven the quarter, Synchrony could point to customer expansion. Instead, existing account activity appears to be doing more of the work. That is a cleaner signal of engagement than raw account growth.
Co-branded cards carried much of the load, generating $25.8 billion of purchase volume, up 23%. That matters because co-branded programs tend to reflect repeated customer relationships with major retail or service partners, not one-off lending events.
For readers tracking the broader consumer debate, this quarter adds useful evidence to the spending-versus-stress split we examine in Consumer Spending Inflation Masks a Weaker U.S. Buyer. Synchrony’s data does not erase that tension. It sharpens it.
Frequency, Not Bigger Baskets, Is the Stronger Signal
Wenzel said the growth came mainly from transaction frequency, not bigger average tickets. Average transaction values were down on a reported basis because of portfolio mix. Excluding that effect, they would have risen just under 2%.
Transaction frequency, by contrast, increased roughly 6% to 9%.
That distinction matters. Bigger baskets can be inflation noise. More transactions suggest customers are returning to the card more often. That can reflect convenience, rewards, loyalty, financing needs or cash-flow management. The source does not isolate which factor dominates.
“So, really, the consumers that we see are engaging and spending more on a frequent basis,” Wenzel said.
XOOMAR analysis: this is the quarter’s most useful consumer signal. Synchrony is not just reporting higher dollars. It is reporting more repeated use. In a credit-card business, that can support purchase volume without requiring a surge in new accounts or a jump in single-purchase size.
The Numbers Investors Should Pull From Synchrony’s Second-Quarter Report
Synchrony’s second-quarter data gives investors two tests: is spending still growing, and is credit quality paying the price? On the figures provided, the answer is spending grew while credit held.
| Metric | Second-quarter figure | Change or context |
|---|---|---|
| Purchase volume | $49.8 billion | Up 8% from $46.1 billion |
| Average active accounts | 68.3 million | Roughly flat vs. 68.1 million |
| Co-branded purchase volume | $25.8 billion | Up 23% |
| Loan receivables | $102.2 billion | Up 2%, according to American Banker |
| Net charge-off rate | 5.43% | Down from 5.70% |
| 30-plus-day delinquencies | 4.16% | Down 2 basis points, according to American Banker |
| 90-plus-day delinquencies | 2.01% | Down 5 basis points, according to American Banker |
| Allowance for credit losses | 10.09% | Of period-end loan receivables |
| Payment rate | 17% | About 70 basis points above prior year |
The segment data was broad, not confined to one pocket. Diversified & Value rose 12% to $17.2 billion. Digital increased 9% to $14.9 billion. Home & Auto advanced 6% to $12.1 billion. Lifestyle gained 6% to $1.5 billion. Health & Wellness increased 2% to $4.1 billion.
The missing piece is also worth stating. The supplied materials do not provide net interest income, so that cannot be weighed here. The analysis has to stay with purchase volume, receivables, payment behavior and credit quality.
Inflation Is Changing Card Behavior, Not Ending It
Synchrony’s data supports a narrower claim than “the consumer is strong.” It supports this one: consumers in Synchrony’s portfolio are still spending through inflation pressure, and discretionary activity has not collapsed.
Discretionary spending as a share of out-of-partner co-branded spend held relatively steady through the first half across super-prime, prime and non-prime customers. American Banker reported that out-of-partner discretionary spending outpaced non-discretionary spending for both nonprime and prime customers, while discretionary spending accounted for 49% of total spend for super-prime customers as of June.
Wenzel also acknowledged that mix helps. “Our non-prime is down 130 basis points quarter on quarter. So yes, mix does help,” he said. “But when you look at that non-prime category, we still see resiliency.”
The softness he highlighted was not at the weakest end, but among middle-prime consumers, who may have less wage growth while facing affordability pressure. That is a more nuanced read than a clean prime-versus-nonprime split.
Retailers, Lenders and Shoppers Won’t Read This the Same Way
Retailers may see Synchrony’s second-quarter performance as support for loyalty, promotions and financing relationships, especially where customers still want flexibility. But the supplied materials do not support reading the quarter as evidence for any single partner relationship. The cleaner takeaway is broader: transaction frequency rose even as active accounts were roughly flat.
Lenders and investors will focus on whether higher usage produces profitable growth or future losses. So far, the credit data looks stable. Synchrony pointed to underwriting changes made in 2023 and 2024, more autopay enrollment and pre-collection outreach to higher-risk customers.
Consumers sit on both sides of the signal. For some, more card usage is convenience. For others, it can be a bridge through higher prices. The same transaction-frequency growth can look healthy or strained depending on income, payment behavior and balance carry.
For a narrower read on the company’s purchase-volume record, see Synchrony Purchase Volume Defies Crisis with $49.8B.
Synchrony’s Readout Points to a Selective Credit Cycle
Synchrony’s readout points less to a blanket boom than to controlled, selective growth. American Banker noted that after a better-than-expected second quarter, analysts saw second-half growth slowing versus the first half, even as the company’s latest figures showed positive purchase-volume growth and stable credit metrics.
The payment rate complicates the story. A 17% payment rate signals healthier repayment behavior, but faster repayment can also weigh on balances. Wenzel said more than half of the recent increase came from new programs including Walmart and Lowe’s, with lower promotional balances also contributing. Together, those effects accounted for about 85% of the increase.
That leaves the cycle highly selective. The positive case depends on repeat usage, disciplined underwriting and repayment behavior staying firm. The risk case is that affordability pressure moves from sentiment into actual delinquencies, especially among borrowers already squeezed by higher prices and less wage growth.
The watch item now is whether frequency stays elevated while delinquencies remain contained. Evidence that would support Synchrony’s thesis: stable or improving charge-offs, steady discretionary share across credit bands and receivables growth that does not require looser underwriting. Evidence that would weaken it: rising middle-prime stress, weakening payment rates for the wrong reasons or purchase growth that depends mainly on larger tickets rather than repeat transactions.
Synchrony’s consumer spending trend does not say households are untouched by inflation. It says they’re still in the game, more selective, more frequent, and not yet behaving like the pullback has arrived.
Disclaimer: This XOOMAR analysis is for informational and educational purposes only. It is not financial, investment, legal, tax, or professional advice. It does not provide buy, sell, hold, price-target, portfolio, or personalized recommendations. Verify information independently and consult qualified professionals before making decisions.
The Bottom Line
- Synchrony’s purchase volume growth suggests consumers are still spending despite inflation and gas-price pressure.
- Stable active accounts imply existing customers are driving more activity rather than growth coming mainly from new accounts.
- The strong co-branded card performance shows targeted credit products remain resilient at checkout.
Originally published on XOOMAR. For more news and analysis, visit XOOMAR.
