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Discover Financial's Arm Teams Up With Elo to Grow in Brazil

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Discover Financial Services’ (DFS - Free Report) arm and part of Discover Global Network — Diners Club International — and the Brazilian payment brand Elo recently announced that an extension of collaboration with the introduction of Elo Diners Club International Cards in Brazil. Notably, Elo’s stakeholders, namely Banco do Brasil, Bradesco and Caixa Econômica Federal continue with this tie-up by adding the Diners Club to its Brazil card portfolio.

With this deal, Diner Club Brazil cards issued by Elo will run on the Discover Global Network, comprising acceptance at 42 million merchant locations and 2 million ATMs in more than 190 countries and territories.

 The partnership of both companies was initiated in 2015 when the two announced that Elo Global Cards would be able to function through Discover Global Network, thus allowing Elo Cardholders get international acceptance. With the first transaction happening in 2016, Elo issued several Elo Global cards in the first couple of years.

Cardholders are set to gain from this partnership as it will enable Discover Financial to offer Diners Club benefits to more people. Diners Club, present in Brazil for more than 50 years, is a globally-recognized brand, catering to affluent customers’ requirements. The new cards would be more useful for international travelers.

Elo, as a partner of  Diners Club International in Brazil will aid both Diners Club Brazil cardholders and Discover Global Network cardholders travelling to this specific region. Cardholders receiving the new Elo Diners Club Brazil card will be allowed to enjoy access to above 850 airport lounges around the globe, great offers in hotels, restaurants, shops and resorts in more than 50 countries plus get rebates on international car rentals.

The company has always been active in forging associations and partnerships on the back of which, card sales volume expanded at 4% average rate in the last four years (2013-2017). The company’s significant investments will likely contribute to Discover Financial’s card account growth and card sales volumes in the future.

Shares of this Zack Rank #2 (Buy) company have rallied 5.1% against the industry’s decline of 5.9 in a year's time%.


Other Stocks to Consider

Some other top-ranked stocks are Enova International, Inc. (ENVA - Free Report) , SLM Corporation (SLM - Free Report) and World Acceptance Corporation (WRLD - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Enova provides online financial services. The company sports a Zacks Rank #1 and came up with average four-quarter positive surprise of 19.68%.

SLM Corporation is a saving, planning and paying for college company in the United States, which delivered average four-quarter beat of 5.30%. It carries a Zacks Rank of 2.

World Acceptance Corporation engages in small-loan consumer finance business. The company is a Zacks #2 Ranked stock and pulled off average four-quarter earnings surprise of 5.36%.

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