Discover Financial Services’ (DFS - Free Report) payment brand, Discover Global Network, recently entered into an agreement with Sage Pay via which, the latter provides better and wider options to pay for online and in-store transactions to Discover Global Network cardholders that consist of Discover, Diners Club and affiliate network cardholders in the UK and Ireland.
Merchants will now be able to offer more payment options and reach out to more customers.
48% Discover cardholders have altered their merchant or spending type if their payment was not accepted while they were travelling around the globe. Discover Financial expects this tie-up to add to the number of places where its cardholders already operate its card for purchases.
Notably, Sage, which provides multiple payment options to cardholders at primary hospitality and retail merchants across the UK and Ireland is the perfect partner for this undertaking by Discover Financial. Sage Pay would be able to enrich its portfolio as well as allow partners to boost their global reach with this deal.
This is yet another strategic step taken by the company to help it stay committed toward improving its services for customers.
Last year, it also tied up with Elo to expand its footprint in Brazil. The deal allowed Diner Club Brazil cards issued by Elo to run on the Discover Global Network, comprising acceptance at 42 million merchant locations and 2 million ATMs in more than 190 countries and territories. Earlier this year, Discover Global Network also reached an agreement with Barclaycard wherein the merchants of the latter are allowed to accept Discover, Diners Club International and affiliate network cards both for in-store and online buys.
Discover Financial is one of the primary card issuers in the United States and a leading innovator in the credit card industry. The company continues to launch products tailor-made to fit specific customer needs in order to attract new customers. It is also active in establishing alliances and partnerships owing to which, card sales volume increased on average rate of 4.6% in the last five years (2013-2018), primarily banking on growth in the customer base using Discover card. We expect these consistent efforts to drive the company’s card acceptance and further help in its steady growth.
Discover Financial boasts more than 44 million merchant acceptance sites besides 2 million ATM and cash access hubs.
Shares of this Zacks Rank #3 (Hold) company have gained 3% in the past year against its industry’s decline of 3.8%.
Stocks to Consider
Investors interested in the same space may take a look at some better-ranked stocks like Enova International, Inc. (ENVA - Free Report) , Encore Capital Group Inc (ECPG - Free Report) and LexinFintech Holdings Ltd. Sponsored ADR (LX - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Enova International provides online financial services. The stock managed to pull off average four-quarter positive surprise of 8.2%. It sports a Zacks Rank #1.
Encore Capital provides debt recovery solutions and related services for consumers. This Zacks Rank #2 (Buy) company delivered average four-quarter positive surprise of 15.1%.
LexinFintech operates as an online consumer finance platform in the People's Republic of China and it came up with average four-quarter beat of 114%. The stock has a Zacks Rank of 1.
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