Issuers range from a buying commission Spree.
Bigger is better. Size Matters. Scale in particular. The card industry has spent the spring and summer to a significant consolidation of the issuer Frenzy gobbled their brethren at a breathless pace. Full-service banks of their operations payments bought most major banks monoline problem, only credit cards.
The question in many industry players, minds, is the next step? The leaders and analysts agree that consolidation was a demonstration at the outset in a sector where growth slows, a saturated consumer market, increased spending and rising interest rates. The next step seems a priori as well. More mergers and acquisitions.
“This type of consolidation is not uncommon in mature industries. It happened in automobiles and computers,” says David S. Evans, author of the book “Pay plastic” and founder of the platform Market Dynamics in Boston. “Many of them is pushed efficiency. The company, which develop the most effective.” The biggest deal was $ 35 billion purchase by MBNA Corp. by Bank of America in June (BofA Becomes Top with issuer MBNA buy, August). Less than a month ago, offering Washington Mutual Inc. announced today ‘ Today that would pay approximately $ 6.45 billion in cash and stocks of Providian Financial Corp. and August heating was HSBC Holdings plc’s a lot to pay $ 1.59 billion for Subprime Issuer Metris Cos Inc banks want to return in (the credit card business) for the range of products and market power, “said Marc Sacher, director of personnel Auriemma Consulting Group.
Mergers, which can lead to the disappearance of monoline issuers are evidence of a significant change in the payment of the transportation industry, says Sacher. “These companies will focus on the overall relationship payment, credit-card debt,” he says.
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