Discover Financial Services’ DFS payment brand Discover Global Network along with Cabal, a local payments network in Argentina, inked a deal to boost the international acceptance of cards issued by both companies.
With more than 3 million merchants across Argentina, Uruguay, Paraguay and Brazil, Cabal will use Discover Global Network technologies with their merchant partners to activate acceptance for Discover, Diners Club International and affiliate network cardholders in these countries. Additionally, Cabal has more than 7 million cardholders who will be facilitated with the access to the Discover Global Network when traveling outside the region. Cabal’s vast existence makes it a perfect partner for the move. This deal is in vein with the company’s efforts to enhance its footprint in the aforementioned geographies.
Meanwhile, Cabal will gain traction as it would use advanced technologies, which in turn, will drive the brand in terms of setting highest international quality standards.
The Discover Global Network consists of Discover Network, Diners Club International, PULSE and above 15 alliance partner networks worldwide. It has 44 million plus merchant acceptance locations and 2 million ATM cash access sites across the globe. The company has been constantly taking initiatives to expand its presence.
In August 2019, Discover Global Network and Verve, a market-leading payments technology company, teamed up to launch the Verve Global Card. With this contract, cardholders can access their Verve Global Cards on the Discover Global Network that will enable acceptance at multiple merchant points worldwide. In June, Discover Global Network along with Redsys signed a pact for increasing its merchant acceptance in Spain. We expect all these endeavors to contribute to Discover Financial’s growth going forward.
Shares of this Zacks Rank #3 (Hold) company have rallied 18.7% in a year’s time, outperforming its industry’s growth of 10.8%.
Stocks to Consider
Investors interested in the same space might take a look at some better-ranked stocks like Fiserv, Inc. FISV, Global Payments Inc. GPN and Cardtronics PLC CATM. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fiserv and units provide financial services technology worldwide. It carries a Zacks Rank #2 (Buy) and managed to pull off average four-quarter positive surprise of 0.9%.
Global Payments works as a payments technology and software solutions company across the globe. It sports a Zacks Rank #1 and managed to deliver average positive surprise of 2.4% in the last four quarters.
Cardtronics offers automated consumer financial services through its network of automated teller machines and multi-purpose financial services kiosks. The company came up with average four-quarter beat of 28.8% and flaunts a Zacks Rank of 1.
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