Discover® Global Network and NETS Collaboration Expands Singapore Acceptance

Rhea-AI Summary

Discover Global Network and Network for Electronic Transfers (NETS) have activated their 2022 strategic agreement, enhancing card acceptance in Singapore. The collaboration enables Discover Global Network's cards, including Discover®, Diners Club International®, and Network Alliance cards, to be used at over 130,000 acceptance points across Singapore. This includes key segments like food and beverage, retail, convenience stores, and supermarkets.

NETS' CEO Lawrence Chan emphasized the partnership's role in offering a comprehensive digital payment solution for merchants. Discover’s Chris Winter highlighted the agreement's contribution to their Asia-Pacific expansion, noting a 34% spend growth in the region in 2023. The agreement follows similar collaborations with payment providers in Australia and China, further broadening Discover cardholders' payment options in the region.

Positive

• Activation of the 2022 strategic agreement between Discover Global Network and NETS.
• Discover Global Network cards now accepted at over 130,000 points in Singapore.
• The agreement enhances the payment options for Discover Global Network cardholders.
• Partnership is part of Discover's broader expansion in the Asia-Pacific region.
• 34% spend growth in the Asia-Pacific region for Discover Global Network in 2023.

Negative

• None.

Insights

Financial Analyst

The collaboration between Discover Global Network and NETS significantly enhances the acceptance footprint for Discover cardholders within Singapore. For investors, this agreement can be viewed as a strategic move that aligns with Discover's broader goal of expanding its presence in the Asia-Pacific region.

From a financial perspective, the increased acceptance points—130,000 POS terminals in key segments like retail and F&B—could lead to higher transaction volumes and increased fee revenues for Discover. The mentioned 34% increase in spending in the region for Discover in 2023 is a promising indicator of future revenue growth.

However, it's important to remain cautious about the competitive landscape in digital payments in Asia-Pacific, which includes strong local players and other global networks. Investors should monitor how these partnerships translate into financial performance over the next few quarters. Short-term impacts may be limited as merchant and consumer adoption ramps up, but long-term prospects appear favorable.

Market Research Analyst

This agreement taps into a growing trend where global payment networks are expanding their reach into high-growth regions. Asia-Pacific is a vibrant market with increasing cross-border commerce and a rising middle class. For retail investors, understanding this demographic shift is key. The partnership allows Discover cardholders to use their cards more conveniently, potentially improving brand loyalty and customer retention.

The logistical agreement also simplifies payment processes for merchants, aligning well with NETS' goal of providing a one-stop payment solution. The synergy between Discover's global network and NETS' local expertise could make the deal more beneficial for both parties.

Investors should consider the broader implications of this partnership as an indicator of Discover's commitment to capturing market share in Asia-Pacific, which could offer a competitive edge over time.

The agreement is the latest effort by Discover Global Network to expand in the Asia-Pacific region

RIVERWOODS, Ill. & SINGAPORE--(BUSINESS WIRE)-- Network for Electronic Transfers (NETS) and Discover Global Network have launched their strategic agreement, signed in 2022, in an event with executives from both companies. The agreement will expand the global acceptance footprint for Discover Global Network cardholders within Singapore. Discover Global Network cards include Discover^®, Diners Club International^®, and Network Alliance cards.

(From left to right) Mr Lawrence Chan, Group CEO, NETS Mr Richardo Leite, Senior Vice President, Head of International Markets (Photo: Business Wire)

NETS is one of the key acquirers in Singapore with over 130,000 acceptance points, and this agreement gives Discover Global Network cardholders the ability to use their cards at Point-of-Sale (POS) across Singapore in segments such as food and beverage, retail, convenience stores and supermarkets.

“This partnership is a natural step forward for NETS as we continue to strengthen our one-stop offering for merchants. Our study confirms merchants want to access a wide range of digital payment acceptance through a single payment provider. NETS is grateful that we are now able to better achieve our purpose of connecting communities, empowering lives by bringing more customers who wish to use Discover to pay our merchants,” said Lawrence Chan, Group CEO at NETS.

“Our strategic alliance with NETS in Singapore contributes to our rapid expansion in the Asia-Pacific region,” said Chris Winter, managing director, head of international markets, APAC at Discover. “We have seen increased spending in the region from consumers around the world, and we want those shoppers to be able to pay how they want.”

With 34 percent spend growth in the Asia-Pacific region for Discover Global Network in 2023 aloneⁱ, Discover Global Network’s agreement with NETS is the latest collaboration to bring more payment opportunities to cardholders and more customers to merchants. In addition to Singapore, through recent enablement with payments companies in Australia and China, Discover Global Network cardholders can make payments at millions of accepting merchants around the region.

About Discover

Discover Financial Services (NYSE: DFS) is a digital banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company issues the Discover^® card, America's cash rewards pioneer, and offers personal loans, home loans, checking and savings accounts and certificates of deposit through its banking business. It operates the Discover Global Network^® comprised of Discover Network, with millions of merchants and cash access locations; PULSE^®, one of the nation's leading ATM/debit networks; and Diners Club International^®, a global payments network with acceptance around the world. For more information, visit www.discover.com/company.

ⁱ Discover Financial Services, Discover Financial Services data, January 2024

View source version on businesswire.com: https://www.businesswire.com/news/home/20240618822545/en/

Sarah Grage Silberman

Discover

sarahgragesilberman@discover.com

@Discover_News

Source: Discover Financial Services

FAQ

What is the significance of the Discover and NETS agreement in Singapore?

The agreement expands Discover Global Network card acceptance to over 130,000 points in Singapore, enhancing payment options for cardholders.

When was the Discover and NETS strategic agreement signed?

The strategic agreement between Discover and NETS was signed in 2022.

Which cards are included in the Discover Global Network?

The Discover Global Network includes Discover®, Diners Club International®, and Network Alliance cards.

How has Discover Global Network performed in the Asia-Pacific region in 2023?

Discover Global Network reported a 34% spend growth in the Asia-Pacific region in 2023.

What segments in Singapore will benefit from the Discover and NETS agreement?

Segments such as food and beverage, retail, convenience stores, and supermarkets will benefit from the agreement.