Discover 2014 Annual Report Download - page 8

Download and view the complete annual report

Please find page 8 of the 2014 Discover annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 200

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200

For Discover Home Loans and Discover Home Equity, 2014 was largely about
positioning for the future. Discover Cashback Checking exceeded 100,000
cross-sold accounts by year end, and we look forward to a broad market
launch in 2015.
Payments Accomplishments
In 2014, Discover achieved growth in dollar volume on our networks while
expanding acceptance to more than 31 million global merchant locations and
more than 1.6 million ATMs. In addition, our proprietary network continued
to be an integral component of card issuance by providing added branding,
acceptance and value for Discover cardmembers. We believe that owning
a proprietary, branded network contributes to the related card business,
and that it is no accident that the two U.S. credit card issuers with their own
networks have had stronger profi tability in terms of return on card assets than
most of their competitors.
Our accomplishments in payments in 2014 included:
• Launch of a new business-to-business payments platform with Ariba®
, an
SAP company and a leading global business commerce network.
• The signing of agreements in Thailand and Cambodia that enhance the
presence we already have in Asia through UnionPay (China), JCB (Japan),
BC Card (Korea), RuPay (India) and others.
• Endorsement by the American Bankers Association (ABA) of Discover Debit,
a compelling alternative signature debit program.
Discover Debit and Pulse PIN debit are great products, but the U.S. debit
market is very challenging right now. Certain competitor actions have
adversely affected the marketplace, and Discover continues to aggressively
address these challenges head on.
Other challenges in payments included Diners Club in Europe and the loss
of a large third-party issuer in 2014. Longer term, we are excited about
Discover.com/company