PROG Holdings' $420M Deal for Purchasing Power Signals New Fintech Frontier

SALT LAKE CITY, UT – January 02, 2026 – PROG Holdings, Inc. (NYSE: PRG), a prominent fintech holding company, has officially finalized its $420 million cash acquisition of Purchasing Power, a leader in the voluntary employee benefits space. The move signals a significant strategic pivot for PROG, expanding its financial-access solutions from traditional retail and e-commerce points-of-sale directly into the American workplace through payroll deductions.

The completion of the deal brings Purchasing Power, with its extensive network of employer partnerships, under the PROG Holdings umbrella, which already includes Progressive Leasing, Four Technologies, and Build. The acquisition is poised to reshape how millions of employees access and pay for consumer goods, creating a powerful new channel for PROG Holdings to reach its target demographic.

“We are excited to officially welcome Purchasing Power to the PROG Holdings family,” said Steve Michaels, President and Chief Executive Officer of PROG Holdings, in a statement. “This acquisition will strengthen our ability to reach consumers through an employer-based channel and supports our long-standing commitment to improve financial access and inclusion for our customers.”

A Strategic Leap into the Workplace

For PROG Holdings, the acquisition is more than just an expansion; it's a strategic diversification into a scalable and potentially more stable customer acquisition channel. The company’s existing subsidiaries—Progressive Leasing (lease-to-own), Four (Buy Now, Pay Later), and Build (credit building)—primarily engage customers at the point of purchase. By integrating Purchasing Power, PROG gains direct access to over 7 million employees across more than 360 corporate and government partners, including 48 Fortune 500 companies.

This employer-based model offers distinct advantages. By integrating directly with payroll systems, Purchasing Power facilitates automated repayments, which can improve predictability and reduce default risk compared to other forms of consumer credit. This structure is particularly effective for reaching the near-prime and subprime consumers that PROG Holdings has long served, offering them a transparent purchasing option without the hurdles of traditional credit checks.

Analysts see the move as a way for PROG to lower its customer acquisition costs and build a more durable relationship with consumers. By becoming part of an employee’s benefits package, the company’s offerings are positioned as a trusted, employer-vetted financial tool rather than just another checkout option. This deeper integration is expected to drive higher repeat usage and long-term customer loyalty.

The Financial Mechanics and Market Reaction

The $420 million all-cash transaction was funded through a combination of approximately $175 million in cash on hand and $260 million in new debt. This financing strategy, while enabling the significant acquisition, has drawn scrutiny from credit rating agencies. S&P Global Ratings, for instance, revised its outlook on PROG Holdings from stable to negative, citing the substantial increase in the company's adjusted leverage.

PROG Holdings' management has acknowledged the temporary rise in leverage but has expressed confidence that the strategic value of Purchasing Power justifies the move. The company has stated its commitment to managing toward its long-term net leverage targets while continuing to return capital to shareholders.

Financially, the acquisition is expected to be immediately impactful. PROG Holdings projects that for the full year 2026, Purchasing Power will contribute between $680 million and $730 million in revenue and generate an adjusted EBITDA of $50 million to $60 million. These figures underscore the scale of Purchasing Power's operations and its potential to become a significant driver of PROG's future growth. The deal also leaves Purchasing Power’s existing $330 million in non-recourse funding debt in place, insulating PROG’s corporate balance sheet from that specific liability.

Redefining Financial Wellness Through Paychecks

At its core, Purchasing Power's model is built on providing financial flexibility. It allows employees to purchase over 70,000 brand-name products—from electronics and furniture to appliances and vacation packages—and pay for them over a 6 or 12-month period through automatic, fixed payroll deductions. The service touts no credit checks, no down payments, and no hidden fees, presenting itself as a responsible alternative to high-interest credit cards or loans.

This approach directly addresses the needs of a large segment of the population that may be overlooked or poorly served by traditional financial institutions. For many workers, it offers a structured and predictable way to manage large purchases without derailing their budgets.

However, the model is not without its critics. Customer reviews for Purchasing Power are mixed. While many users praise the convenience and the "no interest" structure that payroll deduction provides, others point to a significant drawback: product pricing. Some customer complaints highlight that items sold through the platform can be considerably more expensive than if purchased at a traditional retailer. These higher prices are an implicit cost of the financing, a trade-off that customers must weigh against the convenience and accessibility of the service. Other reported issues have included difficulties with customer service and delays in order fulfillment, challenges that PROG Holdings will need to address to ensure a seamless customer experience and protect the brand's reputation among its vast network of employer partners.

The Convergence of Fintech, Credit, and Employee Benefits

This acquisition is emblematic of a larger trend in the financial technology sector: the blurring of lines between payments, credit, and employee benefits. As employers increasingly prioritize the financial wellness of their workforce, fintech companies are recognizing the workplace as a critical new frontier for growth. Offering financial tools as a voluntary benefit provides a powerful distribution model that is both trusted and efficient.

By integrating Purchasing Power, PROG Holdings is creating a more holistic ecosystem of financial products. The potential for synergy is substantial. Data and insights from Purchasing Power’s payroll-integrated platform could enhance the underwriting and decisioning capabilities across PROG's other brands. Conversely, PROG could eventually offer its other services, like credit-building tools from Build, through Purchasing Power's employer network, creating a comprehensive financial wellness suite.

This strategic convergence positions PROG Holdings to compete not only with other lease-to-own and BNPL providers like Upbound Group, Klarna, and Affirm, but also with a growing field of companies in the employee benefits and financial wellness space. The success of this integration will be a key storyline to watch in the fintech industry. The ability to flawlessly execute the merger of technologies, cultures, and operational processes is considered crucial, as any missteps could jeopardize the significant financial and strategic bet the company has just made.