Comperemedia’s Chief Insights Officer, Andrew Davidson is well known for sharing the latest insights on financial services products and marketing strategies/innovations on his LinkedIn, as an event speaker and as a host on Mintel’s Little Conversation podcast. In this bi-weekly recap, he will provide you with the latest news and insights happening in the financial services industry.
Here are the 5 things you need to know:
1. Discover approved to become part of Capital One
On April 18th, Capital One and Discover announced that the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency approved Capital One’s proposed acquisition of Discover. The transaction is expected to close on May 18, 2025.
The merger of these two great credit card brands is historic and will disrupt a credit card landscape that has remained largely stable since the 2008 financial crisis. It ushers in what I’m now referring to as “The New Gilded Age of Credit Cards.”
Let the next chapter begin.
💡The new gilded age of credit cards:
- Two companies now tower over the rest. The merger makes Capital One the largest credit card issuer in the U.S., with $250 billion in outstanding credit card loans. The next closest is Chase at $211 billion, followed by Citi in a distant third with $165 billion. Chase and Capital One have emerged as the dominant forces in the U.S. credit card landscape. They are unmatched in scale, strategy, and infrastructure. They’re not just issuers anymore; they’re ecosystems.
- Capital One, now a hybrid powerhouse. Capital One’s acquisition transforms the company into a powerhouse that blends the strengths of its two key competitors, putting it in a unique and potentially winning position. As a bank (like Chase), it holds an advantage over American Express. Now, as a network (like Amex), it also has an advantage over Chase. Is this the ultimate chess move?
- Better for consumers? Competition in the card space remains fierce, from fintechs to co-brand challengers, but a new tier is emerging. When it was pointed out to Jamie Dimon that Capital One had become #1, he replied, “Not for long,” hinting at a competitive spirit that could drive value propositions higher across the industry.
Source: Capital One Investor Presentation
2. Capital One enters the $5 Billion Club
So here it is, folks, the new world order.
Combining Capital One and Discover’s marketing spend for the past year puts it solidly in the $5 Billion Club, moving above rival Chase, but behind American Express with a whopping $5.8 billion in spend for the year ending Q1 2025.
This unprecedented level of spend, driven by an aggressive push into premium products and richer value propositions, marks more than just a financial milestone. It reflects a fundamental shift in how credit card issuers are redefining customer acquisition, deepening retention, and fortifying brand equity in an increasingly competitive and experience-driven market.
Source: Capital One & Discover Q1 2025 Earnings Call Supplements
💡It’s going up from here unless we hit a downturn:
- Synergies? Richard Fairbank had indicated at the merger announcement last year that Discover marketing would be reduced by around 10% over time. As you can see from the chart, that amount of a reduction would barely register given the scale and continued investment in Capital One’s own marketing spend.
- Network push but not yet. On Capital One’s Q1 2025 earnings call, Fairbank said, “Don’t expect us to come roaring out of the gate promoting the network brand on national TV.” The intent is to build global acceptance and only ramp up when the network is ready. In other words, spending is going up from here.
- Fighting talk. As I mentioned in my previous post, Chase won’t accept Capital One being the largest card issuer, and with marketing numbers now trailing the combined entity, it will need to double down if it wants to regain its position at the top of the tree.
- BUT…when asked on the Q1 earnings call how Capital One will adapt in a recession scenario, the answer was very clear: marketing would be dialed back. Capital One’s outlook on the consumer is positive, but it is watching the signals closely.
Source: Capital One & Discover Q1 2025 Earnings Calls
3. Crypto.com and Bread Financial announce credit card partnership
Cypto.com and Bread Financial have announced the upcoming Crypto.com Visa Signature Credit Card for the U.S. market.
The card is expected to launch “soon” in Q2 2025, marking a major move as Crypto.com expands beyond prepaid debit into traditional credit products with CRO rewards. It’s a clear next step in Crypto.com’s broader vision to get “cryptocurrency in every wallet.”
The card comes in seven colors and has five credit card tiers, from Midnight Blue to Obsidian through which cardmembers can earn uncapped CRO rewards at varying rates.
💡Crypto card second wind fueled by the new administration:
- Crypto rewards are moving mainstream, and regulatory momentum is helping accelerate the shift. It feels like the crypto credit card segment is getting its second wind. Crypto.com already has over 100 million global users, and crypto ownership keeps growing. According to Mintel, 31% of consumers owned cryptocurrency in 2024, rising to 47% among Millennials. The opportunity for crypto-integrated financial products is expanding, and new initiatives like the U.S. Crypto Strategic Reserve are signaling institutional support. I expect we’ll see even more innovation ahead, whether through new crypto-native cards or existing issuers adding crypto rewards options.
- The rewards are exciting, but the process is complicated. The new Crypto.com card will offer 1.5% CRO rewards with the potential to earn up to 5% through the Level Up program. But unlocking higher rewards means locking up CRO tokens for 12 months, and that exposes users to crypto market volatility. Between staking, fluctuating token values, and multi-step reward structures, understanding the full value proposition could feel like needing a PhD in crypto! This will definitely appeal to hardcore crypto enthusiasts who already speak that language,e but could be a barrier for everyday users. And yet that’s another opportunity.
4. MGM and FNBO launch new premium credit card
MGM Resorts and FNBO have launched the MGM Rewards Iconic World Elite Mastercard, introducing a new premium credit card tier for the casino crowd.
- Annual fee: 249
- $200 Resort Credit each year
- Complimentary Night Stay (up to $250 value) each year with $25K spend
- 40K Bonus Points + 10K Tier Credits for spending $5K in the first 3 months
- 10K Tier Credit Bonus each year with $25K spend
- Global Entry or TSA PreCheck- MGM Rewards Pearl Status (priority hotel check-in, free self-parking)
- 6X Points & Tier Credits per $1 spent at MGM
- 2X Points & Tier Credits per $1 spent at hotels, dining, gas stations and grocery stores
- 1x Point & Tier Credit per $1 of deposits on BetMGM (online betting) and for spend everywhere else
- APR: 25.24%
- Limited edition metal “veneer” card
Source: Comperemedia Omni [04/01/2025 – 04/30/2025] as of 05/02/2025
💡 Loyalty opportunity:
- A logical next step. Consumers are increasingly open to higher annual fees in exchange for better rewards and experiences. The value-for-fee model is expanding across categories, and MGM is well-positioned to capitalize. Its MGM Rewards program has grown over 50% since 2020, now surpassing 50 million members. This new card enhances the ecosystem with a premium option that deepens engagement with high-spending, experience-driven travelers. The existing no-fee MGM card still caters to casual visitors, giving the brand flexibility to reach different segments.
- Was this launch a gamble? Not at all. The explosion of iGaming and sports betting has lifted gambling across all formats. Even with digital on the rise, casino gambling still accounts for 75% of total spend. According to Mintel, 41% of adults aged 22 and up have gambled in person in the past year, rising to 53% among Gen Z and Millennials.
- Potential plot twist. The macro environment is uncertain. Consumer confidence is softening and discretionary spending could shift. But MGM has shown remarkable resilience. In April, it reported its strongest-ever month in Las Vegas for both occupancy and revenue. That strength suggests MGM is well-positioned to weather what’s ahead, with the new card potentially foundational to its next phase of loyalty and growth.
5. Credit One takes the lead in subprime and launches a new brand platform
Arise Credit One!
Credit One Bank officially surpassed Capital One as the top mailer of subprime credit card acquisition offers in Q1 2025.
Yes, you read that right. Credit One beat Capital One at its own game.
At the same time, Credit One is evolving its brand. Its new multi-channel campaign, “For What’s Ahead,” reinforces the message that Credit One can empower people no matter where they are on their credit journey.
Note: Only Comperemedia clients with access to Financial Profiles will be able to view FICO data. Contact your account manager for further details.
💡Gearing up for growth:
- Forward-looking optimism. In a time of economic uncertainty, Credit One is not holding back. The phrase “For What’s Ahead” acknowledges that the future is unknown while focusing on progress, preparation, and potential. It’s a message that resonates with consumers who are navigating personal and financial unpredictability.
- Zigging while Capital One zags. With Capital One appearing to scale back subprime marketing, possibly in preparation for the Discover acquisition, Credit One is leaning in by increasing mail volume and promoting the Credit One Bank American Express Card. While others take a more cautious stance, Credit One is seizing the moment and gearing up for growth.
