Discover Financial Services’ (NYSE:DFS) payment brand, Discover Global Network, along with Redsys recently inked a deal for increasing its merchant acceptance in Spain.
With this pact, Discover Financial gets an access to work with additional acquirers in the area in order to boost acceptance for Discover, Diners Club International, PULSE and affiliate network cards. This relation allows the company to connect with merchants across the country, who are eager to accept Discover Global Network cards through Discover Financial acquirer relationships.
The company has been able to sign contracts with two main acquirers in Spain through Redsys’ assistance. It is also working to explore more alliances for expanding its reach further.
Notably, Redsys, which provides advanced services to purchasers holding around 90% of the market share in Spain related to card processing and point of sale systems, is the perfect partner for this venture by Discover Financial.
Spain is a popular travel destination for many of Discover Financial’s cardholders and the company is putting in efforts to offer them more options.
Recently, Discover Financial also entered into a strategic agreement with Borica AD — the owner of Bulgaria’s national payment scheme Bcard — per which Bcard’s Global Cards outside Bulgaria will be allowed on the Discover Global Network. Last month, Discover Global Network signed an agreement with Sage Pay via which, the latter provides wider payment choices for online and in-store transactions to Discover Global Network cardholders consisting of Discover, Diners Club and affiliate network cardholders in the UK and Ireland.
Discover Financial is one of the major card issuers in the United States and a leading innovator in the credit card industry. The company continues to launch products tailored to suit specific customer needs for attracting new clients. It is also active in forging alliances and partnerships by dint of which, card sales volume expanded on 4.6% average rate in the last five years (2013-2018), primarily owing to a rise in the number of customers using Discover card.
The company has more than 44 million merchant acceptance points and 2 million ATM cash access areas worldwide.
Shares of this Zacks Rank #3 (Hold) company have gained 3.8% in a year’s time against its industry’s decline of 4.8%.
Stocks to Consider
Investors interested in the same space may take a look at some better-ranked stocks like Cardtronics PLC (NASDAQ:CATM) , PayPal Holdings, Inc. (NASDAQ:PYPL) and Global Payments Inc. (NYSE:GPN) . You can see the complete list of today’s Zacks #1 Rank stocks here.
Cardtronics offers automated consumer financial services through its network of automated teller machines and multi-purpose financial services kiosks. The company pulled off average four-quarter positive surprise of 43.8% and sports a Zacks Rank #1 (Strong Buy).
PayPal works as a technology platform and digital payments company. It delivered average four-quarter positive surprise of 7.6% and carries a Zacks Rank #2 (Buy).
Global Payments offers payment technology and software solutions and came up with average four-quarter beat of 3.1%. The company holds a Zacks Rank of 2.
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