Diners Club International, Ltd. a business unit of Discover Financial Services (DFS) and part of the Discover Global Network has signed an agreement with The Logic Group, the payment and loyalty specialist. The aim behind the strategic agreement lays clear – expanding Discover and Diners Club’s network globally.
This deal will further expand Discover and Diners Club’s card acceptance in U.K and Europe. Apart from enhancing the global footprint, the deal permits Discover Financial’s cardholders to access a number of top-notch merchants.
Discover Global Network being the third-largest payments network in the world and the largest merchant acceptance network in Asia-Pacific, has solid membership base. It has more than 30 million merchant acceptance locations and one million ATM and cash access locations across 185 countries and territories. Discover Financial now intends to expand its merchant acceptance network further and the aforementioned alliance is expected to help it in this regard.
Discover Financial has been seeking opportunities to partner with key payment service providers so as to increase its card acceptance from leading brands. The latest endeavor of the company complements this objective. Earlier, Diners Club International had signed a similar deal with ACLEDA Bank Plc., which is Cambodia’s largest banking institution in Oct 2014.
This network acceptance agreement is expected to enhance Discover and Diners Club card acceptance in Cambodia. We believe such international expansion strategies to build robust merchant acceptance for Discover Financial’s card members traveling or residing abroad. This should make way for gaining more members and hence generate more revenues.
Discover Financial currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the finance sector include Encore Capital Group, Inc. (ECPG), World Acceptance Corp. (WRLD) and Navient Corp. (NAVI). While Encore Cpital and World Acceptance sport a Zacks Rank #1 (Strong Buy), Navient has a Zacks Rank #2 (Buy).
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