Fintech firm Euro Asia Pay (EAP) has struck an agreement with Discover Global Network to drive its expansion in the US.
The agreement has an initial term period of five years.
Discover will be responsible for powering the fintech’s Hero Financials alternative-to-banking solution, with parental control feature, in the US.
The offering enables guardians to offer funds to their dependents as well as monitor the transactions. It includes a mobile application and a built-in budgeting tool.
Besides, the product ensures security through third-party encryption, apart from including savings and contactless payments functionalities.
The latest agreement will see the two companies supporting joint programmes through issuers of US prepaid cards for acceptance on the Discover Network.
During its initial term, EAP will issue all future cards for the US exclusively on the Discover network.
The duo will also review expected volumes within a “reasonable” time period after the two-year anniversary of Hero Financials’ roll-out.
Discover vice president of Network Solutions William Dulin said: “With Discover cards being accepted at 99% of merchants in the U.S. that take credit cards*, this partnership will further equip EAP with access to a highly dynamic market and customer base.”
In this context, EAP cited a Business Insider study, which projected buying power of Gen Z in the US to surpass $140bn as it emerges as the “largest generational cohort”.
The firm aims to capitalise on this opportunity through its Hero Financials solution.
EAP CEO Peter McKay said: “This partnership will enable us to leverage a spectrum of payment capabilities as Discover has a significant market share and is accepted at millions of points of sales solutions and cash-access locations.
“We believe that this will grant our future Hero cardholders added freedom and choice with regard to how and where they can pay.”
Meanwhile, last month, Discover abandoned its plan to open a branch office in Russia in light of the country’s military attack on Ukraine.