Discover's Q3 earnings show growth in key segments, despite some declines - Business Insider

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Discover's latest earnings point to it bouncing back from the negative impact caused by the coronavirus pandemic

early this year. This could be good for Discover, since more consumers might lean on cards during the busy shopping season, helping it boost its sales volume into Q4.

But Discover may need to rely on other means—such as rewards—to maximize sales volume. Rewards offerings could enable Discover to incentivize card spending, especially with As the shopping season approaches, continuing to pivot cash-back rewards away from categories like travel, and instead focusing on retail rewards—like Discover's 5% cash-back rewards for at Amazon, Target, and Walmart during Q4—may be a useful tactic to encourage spending among cardholders.

Further, a potential second round of stimulus payments may help significantly boost spending among consumers and lead to increased volume for Discover. However, although for a second round of stimulus payments are underway, the prospect and timing of aid remains uncertain.Join other Insider Intelligence clients who receive this Briefing, along with other Payments & Commerce forecasts, briefings, charts, and research reports to their inboxes each day.

 

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