Discover Financial Services
) announced a long-term agreement with Nigeria-based Interswitch
Limited, whereby Discover and Diners Club International (DCI)
cards will be accepted at all ATMs and point-of-sale (POS)
terminals supporting Interswitch's network in Nigeria. Moreover,
the holders of Verve cards will have access to the Discover
global network - which comprises the Discover, DCI and PULSE
networks along with Discover Financial's partner networks - for
international card transactions. Interswitch is the promoter of
The companies have planned a three-phase implementation of the
agreement. In the initial phase, the Verve cardholders will gain
access to the global ATM network of PULSE. Thereafter, the
Discover and DCI cards will gain access to the Interswitch ATM
and POS network. In the final phase, the Verve cardholders will
gain access to the Discover global network, which has presence in
over 185 countries and territories.
Additionally, Discover Financial and Interswitch will work
together to integrate DFS's DPAS EMV solutions and fraud
monitoring solutions to enhance transaction security on both
networks. They will also consider opportunities for further
collaboration in the future.
The agreement is an important step in strengthening Discover
Financial's global payment network. The company is widening its
network to provide wider options to individual and institutional
clients. Apart from offering a global reach, the company strives
to fulfill the localized preferences of clients by teaming up
with regional payment networks, such as Interswitch, which is the
largest integrated payment processing service provider in
Discover Financial is working hard to establish a foothold in
the international card market through various alliances. The
company now has a presence in China, Japan, Korea, Serbia and
India, among others. Peers in the card business, such as
) also regularly form alliances to expand their network presence
in the competitive credit card market.
Discover Financial currently carries a Zacks Rank #3 (Hold).
Another company worth considering in the financial sector is
Encore Capital Group, Inc.
), which carries a Zacks Rank #2 (Buy).
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