Customers can look forward to a flurry of new perks if Capital One’s $35 billion purchase of Discover Financial Services goes through, experts say.
The acquisition would give Capital One access to Discover’s high-credit-quality customers and its network of payment processing services, an area dominated by Visa and Mastercard.
With more premium customers, Capital One will “need to compete on premium perks, and that’s going to be something that’ll benefit customers,” said Marbue Brown, founder of the Customer Obsession Advantage, a consulting firm advising businesses on creating loyal customers. “Perks offered are going to be elevated to a new level.”
Here’s what you need to know about the combination and what consumers may get out of it:
How much is Capital One paying for Discover?
Capital One plans to buy Discover in a $35.3 billion deal.
Learn more: Best credit cards of 2023
Under the terms of the all-stock transaction, Discover shareholders will receive Capital One shares valued at nearly $140. That’s a significant premium to the $110.49 that Discover shares closed on Friday.
Why is Capital One buying Discover?
The deal will create the largest U.S. card issuer with around $250 billion in card balances and a market share of 22%, according to TD Cowen.
It would allow Capital One to compete in the lucrative world of payment networks. Mastercard and Visa together have 83% of the credit card processing market. They are the target of a bipartisan…
