With the objective of tapping the booming credit card market in
China, Diners Club International Ltd., an operating unit of
Discover Financial Services
), has joined Industrial and Commercial Bank of China ("ICBC") to
introduce a Diners Club International franchise in the Asia-Pacific
region. ICBC is one of the largest commercial banks in China
catering to a large section of the Chinese population.
ICBC will function as a franchise of Discover Financial in China
and will be responsible for issuing and acquiring on behalf of the
brand. It is expected that this will significantly increase the
market presence of the Diners Club brand.
Since the takeover of Diners Club in 2008, Discover Financial
has been on an aggressive acquisition spree, partnering with
various institutions to increase the popularity of Discover and
Diners Club cards across the globe. The company entered into a
franchise agreement with Diners Club Ecuador in March 2012.
Discover Financial has also penned agreements with Banco Popular de
Puerto Rico commercial bank and WorldPay.
), two of the company's closest competitors, are equally proactive
on expanding their services inorganically. Visa entered into an
agreement with disbursement and bulk payment solutions provider
Obopay Disbursements to pay out electronic funds to a prepaid card.
Soon after, the company joined Air Canada to facilitate its
Canadian customers with Visa debit card to purchase Air Canada
tickets using their debit cards.
Mastercard also joined forces with Rearden Commerce, provider of
various business and customer solutions, to offer a brand new
personalized website by deploying the latter's Deem commerce
platform. The newly launched website, dubbed "MasterCard Business
Network" will enable the smooth facilitation of operations by small
and medium-sized businesses as well as aid them to streamline their
Discover Financial currently retains a Zacks #2 Rank, which
translates into a short-term Buy rating.
DISCOVER FIN SV (DFS): Free Stock Analysis
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VISA INC-A (V): Free Stock Analysis Report
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