Brian Wenzel, chief financial officer at Synchrony, described the period in straightforward terms. “The word I would probably use … is really momentum,” he told PYMNTS CEO Karen Webster in tandem with the company’s latest quarterly results, pointing to growth in purchase volume, new accounts and steady credit trends.

That momentum is unfolding against a backdrop of higher everyday costs. Wenzel acknowledged that affordability has weighed on households, but he pointed to an important offset. “You are seeing wage growth,” he said, adding that those gains, along with tax refunds, are helping consumers continue to engage even as expenses rise.

Non-Prime Stability Reflects Portfolio Reset

The performance of non-prime consumers remains a central theme in the quarter. Synchrony’s portfolio has been reshaped over time, and that shift is now visible in credit outcomes.

Wenzel said non-prime borrowers continue to show resilience, supported by both wage growth and earlier underwriting decisions. “The second largest category for us was non-prime,” he told Webster, noting that these customers are still participating actively in spending.

The broader effect is a more balanced portfolio. Higher-quality accounts have increased as a share of receivables, while remaining non-prime exposure is performing more steadily than in prior cycles.

Spending Patterns Show Selective Confidence

Purchase activity reinforces the view of a consumer that remains engaged, though more deliberate. Synchrony reported $43 billion in purchase volume for the quarter, a first-quarter record and a 6% increase year over year.

Growth was broad-based, with diversified and value spending up 9%, digital rising 8% and lifestyle increasing 7%.

Within those categories, discretionary spending has begun to reemerge. Wenzel pointed to consumers returning to larger purchases after a period of restraint. “They are comfortable … willing to take on some bigger ticket” purchases, he stated, citing areas such as furniture and home-related purchases.

Even rising fuel costs have not materially changed behavior. Consumers are absorbing higher prices without reducing transaction frequency, suggesting that spending priorities remain intact.

At the same time, payment rates have increased, indicating that households are paying down balances more actively. That combination of steady spending and stronger repayment underscores a more deliberate approach to credit use.

Digital Programs Drive Growth and Efficiency

Digital partnerships are playing a larger role in Synchrony’s model. Relationships via co-branded programs are contributing to both growth and engagement.

Wenzel pointed to refreshed value propositions and expanded capabilities as key drivers. “We refreshed the value propositions with PayPal,” he told Webster, “and Amazon continues to be a real strength for us” as key drivers of volume growth.

Co-branded and dual cards now account for more than half of purchase volume, reflecting deeper integration with digital commerce platforms.

Those efforts are also influencing operating efficiency. Technology investments, particularly in cloud infrastructure and digital capabilities, contributed to a higher efficiency ratio in the quarter. Over time, those investments are expected to streamline operations and improve leverage. Artificial intelligence (AI) is also help improve operations, particularly in call centers and merchant onboarding efforts, Wenzel said.

Volume Strength Aligns With Credit Performance

The expansion in purchase volume has been accompanied by stable credit metrics. Net charge-offs declined to 5.42%, at the lower end of the guided range, while delinquency rates remained broadly in line with the prior year.

Provisioning also moved lower, reflecting improved loss trends and a portfolio that is performing within expectations.

These outcomes reflect earlier credit actions that reshaped the portfolio. By tightening underwriting and adjusting product mix, Synchrony has been able to support growth without increasing risk exposure.

Looking ahead, Synchrony expects receivables growth to accelerate in the second half of the year, supported by new programs and continued consumer engagement. Purchase volume growth is expected to continue through the balance of the year, according to company materials.

The Versatile Credit acquisition adds another dimension, enabling applications to be routed across multiple lenders and expanding approval pathways while maintaining discipline. The waterfall effect proves beneficial, Wenzel said, because “if we’re not the lender and we’re not willing to underwrite [a transaction], we have others who sit behind us in a secondary or tertiary position.”

Wenzel described the broader environment as one in which consumers are adapting rather than retreating. There are consistent spending patterns and stable credit performance despite ongoing uncertainties.

“We’re incredibly optimistic about consumers and their resiliency,” he added.