Showing posts with label discover card. Show all posts
Showing posts with label discover card. Show all posts

Tuesday, September 17, 2013

There's something for everyone in latest global payment cards data

The publication of RBR's global payment cards research provides, among other things, an annual opportunity to analyze how the different card schemes are matching up.
Last year's research highlighted the meteoric rise of UnionPay, and in many ways this remains the outstanding feature again this year, with the Chinese scheme growing its share of cards in issue to 34.5 percent — well ahead of its main competitors.

To some extent all the main schemes will be pleased with the new figures, however. Visa's V Pay, while still something of a niche European scheme, grew its card base by more than 50 percent, for example. And with an overall increase of more than 8 percent, MasterCard brands saw slightly higher growth in card numbers than their Visa counterparts.

The other main schemes — American Express, Diners Club, Discover and JCB — also grew their cards in issue, but it was the 12 percent growth in domestic scheme card numbers that caught the eye here. This only just kept pace with the global growth driven by UnionPay but was nevertheless ahead of most other schemes.

Growth of domestic schemes in less developed markets is likely to be a feature of the global cards scene for the next few years, with Brazil's ELO, India's RuPay and expanding schemes in other large markets such as Mexico and Nigeria.

There is no right way of comparing schemes — while UnionPay now dominates in terms of the number of cards, it must be remembered that most of these are in one country and that UnionPay's share of the number and value of transactions still lags behind the other main schemes.

Interestingly, while UnionPay makes up a more modest 4.4 percent of transactions, this rises to 20.5 percent of the value of global card payments. The message here is that it is only a matter of time before there is an explosion in the number of global card transactions when Chinese people start using cards for more everyday purchases.

Wednesday, April 17, 2013

NPCI to launch RuPay global cards by July

National Payments Corporation of India (NPCI) today said its RuPay debit card will go international by July and announced a tie-up with an American card issuer.

Announcing the tie-up with Discover here, NPCI Chief Executive A P Hota said both RuPay and the American firm stand to gain from this partnership due to extended distribution network of their respective cardholders.

"The RuPay Card is also leveraging upon EMV technology of Discover to issue global cards. Cards, terminal and host specifications for the RuPay global cards have since been released to the pilot-member banks. Issuance of RuPay global cards will commence in July with two banks," Hota said.

NPCI and Discover Financial Services also announced operationalisation of acceptance of Discover and Diners' Club cards in India on NPCI's NFS (National Financial Switch) network.

As part of a strategic alliance, announced last year, Discover and Diners Club cards now are accepted at over 85,000 NFS ATMs across the country, Hota said.

In the coming months, RuPay global cards will be issued and accepted on the Discover, Diners Club International and PULSE networks for international purchases and cash access outside India. This will be followed by the acceptance of Discover and Diners Club cards access at point-of-sale terminals for purchases in the country.

Thursday, April 11, 2013

NPCI ties up with Discover Financial

Reserve Bank of India-backed National Payments Corp. of India Ltd (NPCI), the nodal agency to manage and promote retail electronic payments in India, on Friday tied-up with US-based Discover Financial Services to launch globally accepted debit cards.

NPCI is already running an indigenous debit card payment network called RuPay to compete with multinationals Visa Inc. and Mastercard Inc.
 
“Discover card holders can now already use them in 85,000 ATMs linked to the national financial switch in India and from June end or early July. Rupay card holders can also use them abroad,” said A.P. Hota, managing director and chief executive officer, NPCI.

Monday, March 12, 2012

Discover Financial Agrees To Alliance With Payments Group In India

 Source: http://online.wsj.com/article/BT-CO-20120307-709504.html

--Discover to process transactions made with India's RuPay cards
--Discover and Diner's Club cards will be able to be used at ATMs and merchant terminals in India
--Discover is trying to grow its international footprint
 
NEW YORK -(Dow Jones)- Discover Financial Services (DFS) will process transactions made by cards on India's RuPay payment network under a deal aimed at bolstering Discover's international footprint.
The Riverwoods, Ill.-based credit-card company said Wednesday its alliance with the National Payments Corporation of India will also allow its own cardholders to use their cards at ATMs and merchant terminals in India.

The National Payments Corporation of India was established in 2009 to develop a payments card network similar those operated by Visa Inc. (V) and MasterCard Inc. (MA) for India. That network, RuPay, is still being built out.

"By opening up our global payments network to RuPay cardmembers, we are participating in one of the fastest growing countries for payment cards in the world," Diane Offereins, executive vice president and president of payment services at Discover, said in a statement. "Discover and Diner's Club cardmembers also will benefit from their ability to more broadly use their cards to access cash or make purchases throughout India."

Discover has had a presence in India, including a deal in which HDFC Bank, an Indian bank, issues Diner's Club cards in the country. Diner's Club is owned by Discover.

Discover, like American Express Co. (AXP), typically issues its own credit cards and operates a payments network that processes transactions, unlike Visa and MasterCard, which only process transactions. Higher transaction volume helps boost their revenue.

Discover has a smaller acceptance footprint internationally than does American Express, Visa and MasterCard, though it has been working to change that.

"We're working aggressively to make sure we have strong franchises in India and in China to make sure we can capture" growth in those markets, Roger Hochschild, president and chief operating officer of Discover, said at an investor conference last month.

As part of the new agreement, RuPay card transactions made outside India will be processed over Discover as well as Discover's Diner's Club and Pulse ATM networks. The deal will be rolled out in a "phased manner, starting with acceptance of Discover and Diner's Club cards at RuPay ATMs in India, followed by merchant terminals in India.

The deal is a "nice win for Discover," Sanjay Sakhrani, an analyst with Keefe, Bruyette & Woods, wrote in a research note Wednesday. However, the financial benefits of the deal aren't likely to come until the later stages of the rollout, Sakhrani wrote.

Discover's shares are up more than 38% over the last year. Its shares were up 1.4% at $30.34 in recent trading.