- The Wall Street Journal reports that Discover Financial Services (NYSE: DFS) looks to launch cardless payments for U.S. merchants.
- DFS collaborated with fintech firm Buy It Mobility Networks Inc, whose technology allows consumers to pay directly from their checking accounts using merchants’ apps.
- BIM is betting that discounts will help sway shoppers. Merchants pay lower fees on transactions that travel over the ACH, or Automated Clearing House, rails that connect bank accounts, allowing them to cut prices for shoppers who choose this option.
- Some 11.8 million U.S. merchant locations have plugged Discover’s network, as per 2020 data from the Nilson Report.
- DFS accounted for just 2% of card transactions on major U.S. networks in 2020 versus Visa Inc (NYSE:V) at 65%.
- U.S. banks earn much higher fees on card purchases, giving them little incentive to encourage payments directly to and from bank accounts.
- Price Action: DFS shares traded lower by 0.53% at $123.49 on the last check Monday.
