Synchrony, a financial services company, has launched a new integration with Adobe Commerce.
The mentioned collaboration was announced last Tuesday, April 8th. As part of this interaction, the companies will join forces to provide merchants with more flexibility and choice in offering financing to their customers.
In a press release posted on the Synchrony website, it was noted that in today’s competitive market, the ability to provide long-duration and convenient payment options to consumers is essential. It was also highlighted that as part of the integration, which was announced on Tuesday, thousands of merchants who host websites on Adobe Commerce can offer the Synchrony product suite to accept Synchrony credit cards with extended-term promotions and offer Pay Later installment financing at checkout online.
Jason Knell, senior director of content and commerce partners at Adobe, stated that flexible financing options can increase the average order size and foster repeat business. According to him, the integration of Synchrony with Adobe Commerce to offer more financing options magnifies growth opportunities for joint merchants by enhancing the shopping experience.
This partnership was announced at a time when small and medium-sized businesses are facing significant pressure amid tightening tariff policy measures by the United States. It is worth noting that companies belonging to the mentioned category have a high level of vulnerability to what is happening in the external environment that forms the conditions and circumstances of the specified firms’ activities. The global tariffs of the President of the United States, Donald Trump, have already become a shock factor in global markets. Moreover, against this background, concerns are growing about the implementation of a recession scenario in the space of the US economic system. The current state of affairs is most likely to have a negative impact on consumer activity. The mood of buyers, faced with the reality of an incipient trade war, is deteriorating. This means that consumers will adopt a more restrained approach to shopping. At the same time, there is a possibility that they will start to stockpile certain products to make inventories in anticipation of a further deterioration of the situation, involving a narrowing of their financial capabilities.
Financing small and medium-sized businesses is hard to come by. This is evidenced by the results of a special research conducted in the first half of February when the United States announced tariffs on Canada, Mexico, and China. At the same time, during that period, many countries had not yet announced their trade countermeasures. More than 40% of the research participants stated that they have access to financing in any form, including cash, a business credit card, a bank loan, or an alternative source of credit. At the same time, overall business sentiment that was demonstrated in the first half of February, when the situation in the global trading space was more optimistic compared to the current configuration indicating an increase in pessimism, which in general could not be described as all-consuming. Just under 7% of all small and medium-sized businesses said they were unlikely to survive in the next two years. For businesses in the mentioned category that do not have access to financing, the corresponding figure is 13%.
Natalie Madeira Cofield, chief executive officer of the Association for Enterprise Opportunity, which backs efforts to help companies with under 10 employees, said it’s feeling like a tornado for small business owners. It was also noted that this is an unprecedented moment.
As we have reported earlier, Shopify and Affirm Expand Pay-Later Pact.
