Viewpoint: Credit card merger good for small businesses

Dan Anderson

As a committed advocate for small businesses in Montana, I am compelled to voice my support for the proposed merger between Capital One and Discover. This merger presents a golden opportunity to inject much-needed competition into the credit card processing industry—a move that promises significant benefits for small businesses and consumers alike.

At the heart of this merger is the promise of increased competition in the credit card payment processing market, which is currently dominated by the duopoly of Visa and Mastercard. This dominance has stifled innovation and led to limited incentives for these giants to lower rates, particularly for small businesses operating in Montana communities.

By allowing Capital One and Discover to join forces, we have the potential to disrupt this stagnant system, leveling the playing field for businesses across Montana and beyond. As a small business owner myself, I understand firsthand the challenges of accessing the right services and options. This merger will present businesses like mine with more competitive technology and improved access to useful tools.

Critics of the merger have raised concerns about the potential consolidation of the market. However, a closer examination reveals that these fears may be unfounded. The combined assets of Capital One and Discover pale in comparison to those of the largest national banks, suggesting that this merger will not significantly alter the competitive landscape.

Competition breeds innovation.  The proposed merger between Capital One and Discover represents a step in the right direction for small businesses and consumers alike. It is my hope that policymakers will recognize the benefits of this merger and take action to support its approval.