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Discover Financial (DFS) Suspends Pursuing Russia Payments Market
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Discover Financial Services (DFS - Free Report) recently announced that the company has suspended its plan to pursue Russia’s foreign payments market amid the ongoing invasion of Ukraine. The company provided a statement highlighting that it has no active partners in Russia and its ally, Belarus.
Prior to the invasion, the company was looking to set up a branch office in Russia and register with its central bank. Due to the suspension of its plans, the company might have to forgo the costs it incurred while pursuing Russia’s foreign payment market.
Discover Financial is not issuing any cards in these countries, and its Discover, Diners Club, Network Alliance Partners and PULSE services are also not accepted there. The company stated earlier that the events occurring in Russia are not expected to affect its fundamentals.
Additionally, Discover Financial discontinued all transactions from the sanctioned financial institutions in Russia within its network. The company is not accepting cards issued by banks in Russia and Belarus, and their partner networks. DFS’ suspension comes when a historic exodus of foreign firms from the Russian market is being witnessed. Payments and card services providers like Mastercard Incorporated (MA - Free Report) , Visa Inc. (V - Free Report) and American Express Company (AXP - Free Report) dropped operations in Russia on the wake of the Ukraine invasion.
Mastercard ditched the “uncertain economic environment” in Russia, and blocked several financial institutions in the country from its payment network. MA said that 4% of its net revenues were tied to Russia and 2% with Ukraine.
Similarly, Visa announced compliance with the U.S. sanctions against Russia and ceased transactions. A total of 5% of Visa’s net revenues were exposed to Russia and Ukraine.
American Express joined the companies in suspending operations in Russia. Globally issued AmEx cards are expected to not work in the country as well.
Zacks Rank & Price Performance
Discover Financial currently has a Zacks Rank #3 (Hold). Its shares have increased 3.5% in the past month, in line with the industry.
Image: Shutterstock
Discover Financial (DFS) Suspends Pursuing Russia Payments Market
Discover Financial Services (DFS - Free Report) recently announced that the company has suspended its plan to pursue Russia’s foreign payments market amid the ongoing invasion of Ukraine. The company provided a statement highlighting that it has no active partners in Russia and its ally, Belarus.
Prior to the invasion, the company was looking to set up a branch office in Russia and register with its central bank. Due to the suspension of its plans, the company might have to forgo the costs it incurred while pursuing Russia’s foreign payment market.
Discover Financial is not issuing any cards in these countries, and its Discover, Diners Club, Network Alliance Partners and PULSE services are also not accepted there. The company stated earlier that the events occurring in Russia are not expected to affect its fundamentals.
Additionally, Discover Financial discontinued all transactions from the sanctioned financial institutions in Russia within its network. The company is not accepting cards issued by banks in Russia and Belarus, and their partner networks. DFS’ suspension comes when a historic exodus of foreign firms from the Russian market is being witnessed. Payments and card services providers like Mastercard Incorporated (MA - Free Report) , Visa Inc. (V - Free Report) and American Express Company (AXP - Free Report) dropped operations in Russia on the wake of the Ukraine invasion.
Mastercard ditched the “uncertain economic environment” in Russia, and blocked several financial institutions in the country from its payment network. MA said that 4% of its net revenues were tied to Russia and 2% with Ukraine.
Similarly, Visa announced compliance with the U.S. sanctions against Russia and ceased transactions. A total of 5% of Visa’s net revenues were exposed to Russia and Ukraine.
American Express joined the companies in suspending operations in Russia. Globally issued AmEx cards are expected to not work in the country as well.
Zacks Rank & Price Performance
Discover Financial currently has a Zacks Rank #3 (Hold). Its shares have increased 3.5% in the past month, in line with the industry.
Image Source: Zacks Investment Research
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.