Viewpoint: Proposed credit merger would boost communities
I know how essential a competitive market is to creating positive outcomes for consumers. As a longtime advocate for fair competition and opportunities for working families in Montana, I am proud to support the proposed Capital One-Discover merger, along with Capital One’s $265 billion Community Benefits Plan (CBP).
It presents an opportunity to expand access to financial resources that strengthen communities across the nation—including right here in Montana.
In today’s credit card industry, consumers already have an abundance of options. Recent findings show that the average American holds between three to four credit cards, issued by various providers, and has little trouble switching between products.
With over 4,000 institutions issuing credit cards and four major networks supporting universal acceptance, it’s clear the credit card market is highly competitive, and it will remain that way even if this merger moves forward. In fact, regulators from the OCC and the Fed affirm the strength of competition in the credit card market, nodding to merger’s ability to further enhance it by allowing Capital One to become a more innovative and reliable player within the market.
Capital One will remain the third-largest credit issuer by purchase volume, even post-merger. It won’t overtake the giants at the top—Chase and American Express—but instead will be better equipped to compete with them. This ensures that smaller issuers continue to thrive as viable options while Capital One remains just one among many choices for consumers.
The Banking Policy Institute recently confirmed that the credit card industry remains less concentrated than it was a decade ago, which is a testament to the healthy level of competition that would only benefit from a Capital One-Discover merger.
This merger also steers clear of affecting payment networks, which operate independently of issuers like Capital One and Discover. Capital One’s structure as a financial institution, rather than a payments network owner, ensures that the transaction won’t alter the existing framework of payment networks. By keeping competition healthy at both the issuer and network levels, consumers are empowered with better features and services.
As someone who has spent decades working in Montana’s labor movement and advancing economic opportunities, I see this merger as a unique chance for competition to thrive in ways that matter for working families. Through the CBP, Capital One has pledged billions in community investments to reach underserved areas, support small businesses, and provide affordable housing.
As regulators consider the proposed merger, I urge them to see the potential benefits for consumers and competition alike. A stronger Capital One, equipped with resources from Discover, will only contribute to a fairer, more competitive market.
This is a merger that prioritizes choice, empowers consumers, and invests in the community fabric, and I am confident it will bring positive, lasting change for all.
