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Global Payments Buys Discover Global Cards to Expand in APAC

Zacks Equity Research

Global Payments Inc. GPN along with Discover Financial Services (DFS) recently announced that it has acquired all the cards on the Discover Global Network in Hong Kong and Taiwan. The buyout includes Discover, Diners Club International and other partner cards.

This unique tie-up will now be expanded to the primary hotels, luxury brands, food and beverage dealers and other businesses in Hong Kong and Taiwan.

Both companies have been working together since 2006 with the acceptance of Discover Global Network card in place in the United Kingdom, the United States and Canada.

Global Payments will gain traction from widening the acceptance and usage of the Diners Club and Discover cards in more markets across the Asia Pacific belt. Both cards will add to its comprehensive array of products and services. With this collaboration, the company will be able to keep up its commitment toward the advanced payments technology worldwide by providing a different payment acceptance mode.

Notably, both Hong Kong and Taiwan are the top destinations for business travelers and tourists, mainly for the Discover Global Network building partnerships in the Asia Pacific region.  Discover Financial has been constantly making efforts to ensure more acceptance in the key markets, which in turn, will enrich the customer experience during travels.

The Discover Global Network that includes Discover Network, Diners Club International, PULSE and affiliate networks, has more than 44 million merchant acceptance hubs and 2 million ATM cash withdrawal sites across 190 plus countries and territories.

Global Payments has been emphasizing acquisitions for expedited growth. Several acquisitions made in recent years have added to its scale and size. Recently, the company also purchased Sentral Education, a leading provider of cloud-based school administration software solutions in Australia. The company’s active acquisition strategy positions it well for long-term growth.

Shares of this Zacks Rank #2 (Buy) company have rallied 25.9% in a year’s time, outperforming the industry’s growth of 24.8%.



Other Stocks to Consider

Investors interested in the finance sector can also look into some other top-ranked stocks like Virtu Financial, Inc. VIRT, Fidelity National Information Services, Inc. FIS and Euronet Worldwide, Inc. EEFT, each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Virtu Financial provides market making and liquidity services to the financial markets around the globe. The company came up with average trailing four-quarter positive surprise of 0.63%.

Fidelity National Information works as a financial services technology company worldwide. The company managed to deliver positive results in all the trailing four quarters, the average being 2.72%.

Euronet provides payment and transaction processing and distribution solutions worldwide. The stock pulled off average four-quarter beat of 2.68%.

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