Capital One has been revamping its credit card program and growing its share of the credit card market in the US, suggesting that it may be emulating American Express' business model after announcing its acquisition of Discover Financial Services. Acquiring Discover would give Capital One more control over its credit card program and access to Discover's payment technology. Discover operates its own closed-loop credit card network like American Express, unlike open networks like Visa and Mastercard.
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00:00 It's Benzinga and here's what's on the block. Capital One has been revamping its credit card
00:04 program and growing its share of the credit card market in the US, suggesting that it may be
00:08 emulating American Express's business model after announcing its acquisition of Discover Financial
00:12 Services. Acquiring Discover would give Capital One more control over its credit card program
00:17 and access to Discover's payments technology. Discover operates its own closed-loop credit
00:21 card network like American Express, unlike open networks like Visa and Mastercard. This could
00:26 allow Capital One to potentially transition to more of a closed-loop model, providing both banking
00:30 services and underwriting loans. Berkshire Hathaway's investment in Capital One stock
00:35 may indicate it sees similarities to Buffett's favorite American Express. For all things money,
00:39 visit Benzinga.com.