Discover Financial Services DFS announced a partnership with Skipify to improve the cardholder experience during checkout. The collaboration enhances the security and efficiency of digital transactions, reinforcing DFS’s position as a leader in secure payments while driving increased merchant adoption and customer engagement.

This move bodes well for Discover Financial as the integration of advanced tokenization technology into Skipify’s Commerce Identity Cloud will enhance security by replacing sensitive information with tokens. DFS will be able to reduce fraud risks and improve transaction security. This increased security is likely to boost authorization rates, leading to fewer declined transactions and higher merchant conversions, directly benefiting Discover Financial’s bottom line in the future.

This move highlights that DFS understands the need for investments in innovation and technology, owing to the widespread adoption of digital means across every sphere of life and the associated risks that crop up with digital payments. Therefore, making the Skipify platform available for merchants, which keeps the payment credentials embedded, and shields consumers and merchants from significant losses incurred in case of fraud, seems to be of utmost importance.

Skipify is the perfect partner for innovations for DFS as its Identity Cloud is expected to recognize 1 out of every 2 U.S. shoppers by 2025 end. In the near term, this move positions Discover Financialto capitalize on the booming digital payments space while strengthening its global network. DFS’s payment services segment’s volume improved 4% year over year in the fourth quarter of 2024.

Discover Financial’s Price Performance

DFS shares have gained 35.7% in the past six months compared with 23.5% growth of the industry.

Image Source: Zacks Investment Research

DFS’ Zacks Rank & Other Key Picks

Discover Financial currently has a Zacks Rank #2 (Buy).

Investors interested in the broader Finance space may look at some other top-ranked players like ProAssurance Corporation PRA, Enova International, Inc. ENVA and Jackson Financial Inc. JXN. ProAssurance and Enova International currently sport a Zacks Rank #1 (Strong Buy), and Jackson Financial carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for ProAssurance’s current-year earnings is pegged at 91 cents. In the past two months, PRA has witnessed two upward estimate revisions against none in the opposite direction. The consensus mark for current-year revenues is pegged at $1.1 billion. The company beat earnings estimates in the past four quarters, with an average surprise of 152.7%.

The Zacks Consensus Estimate for Enova International’s current-year earnings is pegged at $11.33 per share, which indicates 23.8% year-over-year growth. It has witnessed three upward estimate revisions in the past 60 days against no downward movement. The consensus mark for ENVA’s current-year revenues suggests 16.1% year-over-year growth.

The Zacks Consensus Estimate for Jackson Financial’s 2025 earnings indicates 11% year-over-year growth. In the past two months, JXN has witnessed two upward estimate revisions against none in the opposite direction. It beat earnings estimates in two of the past four quarters and missed twice, with an average surprise of 8.9%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Discover Financial Services (DFS) : Free Stock Analysis Report

ProAssurance Corporation (PRA) : Free Stock Analysis Report

Enova International, Inc. (ENVA) : Free Stock Analysis Report

$Jackson Financial Inc(JXN-A)$. (JXN) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research