Major growth initiatives for Discover include the company's partnership with
(EBAY) unit PayPal and the company's new "It" card, which Napoli said "will likely represent the largest marketing investment in 2013.
The "It" card "provides the combination of solid features (e.g., rewards, strong customer service) without fees and will serve as Discover's flagship card for customer acquisitions," according to Napoli, and is meant to compete against similar products, including Capital One (COF) Cash Rewards, Bank of America Cash Rewards, Chase Freedom and Citi Simplicity.
"Discover has employed several strategies over the years to drive controlled growth. We believe this has allowed Discover to have some of the best credit metrics in the industry during the recession and next to best metrics currently," Napoli wrote.