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What Capital One buying Discover could mean for you, the customer
Following the news that Capital One is hoping to acquire Discover for a massive $35 billion, many credit card-using Americans have been left wondering what it means.
Richard Fairbank, founder, chairman, and CEO of Capital One, issued a statement on Monday night about the companys intention to buy Discover, one of four major credit card companies operating in the United States.�
The merger would make them the biggest company in the industry
The deal was announced on Monday and would make the combination of Capital One and Discover the largest credit card company in the US by loan volume.�
Fairbank said in a statement on Monday: “Our acquisition of Discover is a singular opportunity to bring together two very successful companies with complementary capabilities and franchises, and to build a payments network that can compete with the largest payments networks and payments companies.
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Through this combination, were creating a company that is exceptionally well-positioned to create significant value for consumers, small businesses, merchants, and shareholders as technology continues to transform the payments and banking marketplace.
what does Capital One buying Discover mean?
As the average American grapples with higher debt and interest rates, the proposed merger would leave them with fewer options in the marketplace.�
Credit card users, for now, are not going to see any big big changes but some consumer advocates are saying this deal is concerning because it will result in more consolidation of the banking and credit card industries which could mean less choice down the road for consumers, CBS finance expert Jolene Kent explained on Tuesday.
Though Capital One is one of the larger banks in the United States, Discover is the smallest of the four major credit card companies including Visa, Mastercard, and American Express.�
She continued to explain that Capital One stands to gain a lot from the potential deal as Americans, more than ever, are swiping their credit cards.
Speaking to Nerd Wallet, David Robertson, the editor and owner of the Nilson Report, explained: I think its not going to be a big change for credit card customers.
Of course, its still early days for the potential deal as Capital One is hoping to close it by the end of the year or in early 2025. Regulators still have to approve the merger, and a lot can happen between now and the end of the year.�
