Posted 2/20/2024, 5:27:00 PM
Capital One to Acquire Discover in $35B Deal, Raising Questions for Credit Card Networks
- Capital One acquiring Discover in a $35.3B deal, sparking implications for Visa, Mastercard, Amex
- Combined company will have $630B in assets, with significant credit card and loan portfolios
- Deal provides optionality for Capital One to negotiate down fees or transition away from Visa/Mastercard
- Capital One is a top issuer of Visa/Mastercard cards, so any transition would likely be slow
- Deal gives Capital One access to Discover's smaller network, increasing competitiveness vs Visa/Mastercard