Yesterday, Discover Financial Services ( DFS ) joined hands with global card payment acquirer WordPay in the U.S. The deal will provide the latter's customers with PayPal In-Store Checkout at the brick-and-mortar locations of participating merchants. The customers of WorldPay will be able to accept Discover's Paypal at the point of sale by 2013 spring.
The deal entails WorldPay to utilize PayPal's card service and provide an opportunity to the former to become one of the leading U.S. businesses in terms of enabling customers with the new PayPal mag-striped card. The card enhances the speed, safety and ease of transactions processed through the already existing digital modes of payment accessed by more than 50 million PayPal customers.
WorldPay expects the partnership with Discover to boost its clientele base as more business owners will now accept the new card service that offers smooth and secure transactions. In anticipation of more customers and their loyalty towards the company, WorldPay expects far higher sales level.
Discover Financial and WordPay have worked together for a long time now and appear satisfied with this fruitful association. Discover is expected to expand its customer base through this partnership.
Discover engages in a number of partnerships and acquisitions to strengthen and expand its operations. Earlier this month, Discover Financial also allied with Birmingham-based Cadence Bank to launch the new Cadence Bank Debit Card. Through this alliance, Discover Debit will provide network support to the Cadence debit card holders in the second quarter of the year.
Recently, Worldpay partnered with epay, a division of Euronet Worldwide, Inc . ( EEFT ) to provide an opportunity to retailers. They can now utilize epay's new terminal with Streamline Technology for payments made through credit and debit cards.
Discover Financial currently carries a Zacks Rank #3 (Hold). American Express shares the same Zacks rank.
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