Discover Financial Services
) announced that it has entered into a partnership with
). This alliance will enable Discover cardholders to access their
credit card using compatible smartphone by means of Google
The cardholders will simply have to save their Discover card on
Google Wallet through their account on Discover's website and make
it their primary credit card. The Google Wallet application on the
user's compatible Near Field Communication ("NFC") smartphone will
then automatically sync with the card. Alternatively, they can use
their Google account or use the Google Wallet mobile application to
add their Discover card to Google Wallet.
Subsequently, they will be able to use the smartphone to make
in-store as well as online purchases through the card. The system
offers a secure yet convenient alternative payment option to
Discover's cardholders. Moreover, they will not have to forgo their
Cashback Bonus rewards even if they use Google Wallet for
The partnership is expected to be beneficial for Discover as it
will help the company to attract the technology-friendly younger
crowd towards its products. The company constantly strives to
provide flexible and convenient payment options to cardholders in
order to boost its card acceptances and enhance its competitive
strength against bigger card giants, such as
In February, Discover's subsidiary, PULSE, signed an agreement
with Obopay Inc., which allowed the company's debit card customers
to transfer their money instantly through mobile phones using
Obopay's 'Mobile Money for Banks and Credit Unions.'
Discover currently carries a Zacks #2 Rank, which translates
into a short-term Buy rating. We maintain a long-term 'Outperform'
recommendation on the stock.
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