Discover Financial Services ( DFS - Free report) recently announced it would be supporting Phood’s new meal delivery service on college campuses. It will also allow access to merchants on the Discover network.
With this unique relationship, higher-education students will be able to sign up on a mobile application and add their meal plans. Students would be able to use their flex plan dollars for meal delivery such as groceries and DoorDash food items.
Students will be able use a Phood Discover prepared credit card on campus. They can also use their flex plan dollars to pay for delivery and out-of-campus meals. With contactless payments rising by the day, mainly led by the pandemic, this move came in at the right time. This is evident from the fact that U.S. contactless volume surged 152% from 2019 to 2020.
The entire ordering process for food has changed since the pandemic. As students are returning to their campuses, they will be able to leverage from this solution as they won't have to spend money beyond their meal plans. This solution will initially be launched at Creighton University and Rocky Mountain College in Billings.
Discover Financial, Phood and Discover Financial will try to launch this plan all across the country through the school years. Phood will be able to reach out to more customers with this deal.
The pandemic obviously showed us the requirements of digital solutions. Students on campus and elsewhere will have more payment options through the app.
This is not the first time that Discover Financial took such an initiative. To increase its global reach as well as expand its portfolio, Discover Financial constantly seeks strategic alliances. To enrich its customers' experience, the company works hard to integrate choices at a wider scale.
It struck a deal to expand its global acceptance with SIBS MB in July.
It also signed a new network contract with the market-leading digital payment solutions company and fintech enabler Arab Financial Services (AFS) to drive global acceptance for both companies.
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Shares in this Zacks 3 (Hold), currently Zacks Rank #3 company have shot up a remarkable 115.5% within a year compared to the industry's surge of 98.4%. View the complete Zacks #1 ranking (Strong Buy) stocks list here.
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Stocks to Consider
Credit Acceptance Corporation ( CACC-Free Report), Ally Financial Inc.( ALLY-Free Report) and First Cash, Inc., (FCFS-Free Report) are some other better-ranked stocks within the same space. Credit Acceptance holds a Zacks Score of 1, First Cash has a Zacks Rating #2 (Buy), and Ally Financial has a Zacks Score of 1.
Earnings at Ally Financial, First Cash, and Credit Acceptance delivered an average four-quarter surprise rate of 65.4% to 63.36% and 21.71% respectively.
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