Sunday, October 30, 2011

Discover Financial Services

Discover Financial Services is a direct banking and payment services company. Discover offers consumers personal and student loans, savings products and of course credit cards, debit cards and even prepaid cards.

Discover launched as a Sears subsidiary offering cash back on purchases. It was later spun off from Sears merged with Morgan Stanley and finally went public as Discover Financial Services in 2007.


The following video will take you through Discover's current financial position relative to its peers, Visa, Mastercard and American Express and delve into Discover's network.



As you saw in the video Discover is lagging behind its competitors both financially and in network size. Its most recent acquisitions and partnerships seem designed to reverse this. Partnerships with large payment processing companies in asia and the acquisition of Diners Club International have moved Discover from a strictly U.S. company into a major global presence. Its acquisition of The Student Loan Corporation is an attempt to diversify its holdings to blunt the impact of the economic downturn. Here is a picture of Discover's current relationships which highlights Discover's emphasis on building its merchant network.



While Discover was once a technological innovator, witness the first of its kind key chain card,


it lagged behind the technological revolution overtaking the payment processing industry in the 2000's.
Discover recently entered this century with its partnership with Isis creating the NFC powered Discover Zip network.


In addition to the nascent Discover Zip Network, Discover cards will soon be added to the Google Wallet,


A much safer bet for Discover since we have already seen how well they can build a network 1/12 the size of Mastercard and Visa

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