Discover Financial Services will have its credit cards issued outside of the United States for the first time, thanks to a new deal in Ecuador.
Discover, which bought the Diners Club International network in 2008, has expanded its agreement with the network's Ecuador franchise. The deal gives Diners Club Ecuador exclusive rights to issue Discover cards in the country, which it plans to do through a sub-license agreement with Banco Pichincha, the country's largest bank.
"Discover clearly will benefit from the success of the Diners Club Ecuador franchise, which is a dominant force throughout the country," Diane Offereins, executive vice president and president of Discover's payment services unit, said in a press release on Wednesday.
The Riverwoods, Ill., credit card company is trying to build up its international acceptance, largely through refurbishing the Diners Club network it bought from Citigroup Inc. in 2008.
But Discover still struggles with international acceptance levels for its cards. Its customers currently traveling in South America are only able to use their Discover cards in Ecuador and Brazil, according to the company's web site.
Through its new deal, Discover cards will be processed on the Diners Club network in Ecuador. The new cards will initially offer a basic version of Discover's cash rewards program, but the company said that it also plans to launch new products.
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