Wall St

How Capital One’s $35 Million Discover Merger Could Affect Consumers

Author: Jennifer Surane and Katherine Doherty Source: Bloomberg
February 22, 2024 at 06:14
Illustration: Janik Söllner for Bloomberg Businessweek
Illustration: Janik Söllner for Bloomberg Businessweek

Critics are wary of the size of the deal, but some analysts say it could create a stronger challenger to Visa and Mastercard.

For decades, Capital One Financial Corp. Chief Executive Officer Richard Fairbank watched as Discover Financial Services built one of the most coveted assets in the world of finance—a global payment network facilitating tens of millions of credit card transactions each day. On Feb. 19 he announced plans to buy it.

The $35 billion deal—the biggest merger announced globally this year—would unite two storied consumer-finance brands and create the largest credit card issuer in the US by loan volume, surpassing the likes of American Express, Citigroup and JPMorgan Chase.

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