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Fintech Nexus Newsletter (February 20, 2024): This is a big deal: Capital One is acquiring Discover
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Capital One - Fintech Nexus Newsletter
A Capital One bank branch in New York, US, on Monday, Jan. 8, 2024. Capital One Financial Corp. is scheduled to release earnings figures on January 25. Photographer: Jeenah Moon/Bloomberg via Getty Images
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Fintech Nexus Newsletter (February 20, 2024): This is a big deal: Capital One is acquiring Discover

Fintech Nexus Newsletter (February 20, 2024): This is a big deal: Capital One is acquiring Discover

Peter Renton·
Fintech Nexus Newsletter
·Feb. 20, 2024·4 min read

Many people have called Capital One the original fintech. 

Founded in 1994 by Richard Fairbanks and Nigel Morris (of QED) Capital One broke new ground as a monoline credit card bank that married technology and data science before that was a thing in banking.

Fast forward 30 years and Capital One is a top 10 bank and one of the leading credit card issuers in the U.S. Now, it is looking to get even bigger with the announcement yesterday that it is planning to acquire Discover for $35 billion.

This will be an all-stock deal that values Discover at a 27% premium over its closing price on Friday. It would also give Capital One its own card network, providing opportunities that are currently only available to American Express.

It will also give Capital One an even larger credit card customer base. 

Of course, this has to pass regulatory scrutiny before the deal can close but the commentary I was reading yesterday sees approval as being very likely. 

Things are about to get even more interesting for payments networks.


Featured

> Capital One Is Buying Discover Financial for $35 Billion

www.wsj.com  

The deal would combine two of the largest credit-card companies in the U.S. at a booming time for the sector.


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  • Peter Renton
    Peter Renton

    Peter Renton is the chairman and co-founder of Fintech Nexus, the world’s largest digital media company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series.

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