Diners Club International - a unit of
Discover Financial Services
) - announced an agreement with Barclaycard Global Payment
Acceptance. As per the agreement, merchants who use Barclaycard's
payment acquiring services will accept all Discover and Diners
Additionally, the cards of Discover Financial's network
partners will also be accepted by these merchants. This will
significantly increase Discover Financial's merchant locations as
Barclaycard has a network of over 89,000 merchants.
The Discover and Diners Club network will be added to
Barclaycard's payments processing services portfolio as a
standard offering from 2015. Barclaycard is one of the largest
payment processing companies in Europe.
The agreement is expected to be mutually beneficial for the
companies. While Discover Financial's cardholders will have the
benefit of increased merchant acceptance, particularly in UK, the
deal should boost the transaction volume of Barclaycard once
Discover Financial's cardholders start using its services.
Discover Financial is trying to grow its business through
alliances. Last month, the company expanded its business alliance
with Japan Credit Bureau (JCB). The expanded relationship will
allow the U.S. ATM acquirers to route all JCB transactions over
PULSE - Discover Financial's ATM, debit and electronic funds
Additionally, Discover Financial has announced affiliations
with Birmingham-based Cadence Bank and Nigeria-based Interswitch
Limited this year to boost card acceptances and transaction
volume. Apart from that, the company launched Discover Cashback
CheckingSM - a checking account offering cash back rewards - and
Discover It - a new credit card that charges no annual fee,
over-limit fee, pay-by-phone fee, foreign transaction fee or any
fee on the first late payment - to expand its market
Discover Financial currently carries a Zacks Rank #2 (Buy).
Other stocks in the financial sector that are worth a look are
Regional Management Corp.
) - a Zacks Rank #1 (Strong Buy),
Credit Acceptance Corp.
) - a Zacks Rank #2 (Buy) and
) - Zacks Rank #2 (Buy).
CREDIT ACCEPT (CACC): Free Stock Analysis
DISCOVER FIN SV (DFS): Free Stock Analysis
REGIONAL MANAGE (RM): Free Stock Analysis
VISA INC-A (V): Free Stock Analysis Report
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