Discover Financial Services (NYSE:DFS) DFS entered into an agreement with instalment payment platform Sezzle, Inc. through which Sezzle will be allowed to work with certain merchants on the Discover Global Network. The combination is expected to enrich customer experience with plenty of payment options at disposal.
Notably, this is the latest move made by the company in the buy now, pay later space. Moreover, Sezzle is the perfect match for this deal as of late, it is collaborating with major card networks in the United States.
Sezzle’s platform will allow certain US merchants to offer their customers an interest-free buy now, pay later choice. Later on, they can process the transactions on the Discover Global Network.
The company constantly works on including options for its customers so that they can enjoy a better experience. This move made at an opportune time when the market is volatile and people need some feasible options in making payments.
Sezzle will be able to establish its BNPL network through this arrangement.
The company is making continuous efforts by teaming up with leading organizations to increase its acceptance across the globe. Last November, it inked a deal with Lebanon-based areeba to jointly expand their global reach.
In August 2020, Discover Financial tied up with Car IQ, a California-based financial technology startup to introduce a payment platform for machine-initiated payments starting with automotive fleets.
Discover Global Network has more than 48 million merchant acceptance locations and two million ATM and cash access locations across the globe.
It is accepted by 99% places that accept credit cards in the United States.
Zacks Rank and Price Performance
Shares of this currently Zacks Rank #3 (Hold) company have gained 19.4% in a year’s time, outperforming its industry’s growth of 14.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other companies in the same space, such as SLM (NASDAQ:SLM) Corporation SLM, Capital One Financial Corporation (NYSE:COF) COF and Synchrony Financial (NYSE:SYF) SYF have also rallied 22.1%, 13% and 9%, respectively, in the same time frame.
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