Capital One - Discover merger: What we know and how it impacts you

Capital One said it's acquiring Discover Financial for $35.3 billion in a deal combining two of the nation's largest lenders and credit card issuers.

If the deal closes, Capital One shareholders will own 60% of the combined company while Discover shareholders will own 40%, according to a Capital One release.

What does the potential Capital One and Discover merger mean for consumers?

Capital One issues Visa and Mastercard for most of its credit and debit cards, along with small numbers of cards for Discover. The merger would likely result in some cards switching over to the Discover network, according to The Wall Street Journal.

With the companies merging, it would allow them to compete with larger networks and payments companies and deliver services to more than 100 million customers. 

RELATED: Capital One to purchase Discover Financial for $35 billion

The merger would also let Capital One leverage its customer base and technology to boost more sales for merchants and quality deals for consumers and small businesses, the company noted. 

How does Capital One and Discover uniting impact other banks?

Additionally, Capital One purchasing Discover would give them an advantage against credit card-issuing banks like JPMorgan Chase, Bank of America and Citigroup, which don’t process transactions themselves, CNN reported. 

Capital One would also get a new source of revenue from merchant fees it collects. Discover is considerably smaller than the other three major credit card networks: Visa, Mastercard and American Express.

When will the deal close?

Capital One said the transaction is expected to close in late 2024 or early 2025, subject to the satisfaction of customary closing conditions such as regulatory approvals and approval by each company's shareholders. 

The company and Discover plan to hold a live investor presentation call on Tuesday morning at 8:00 a.m. ET.

This story was reported from Washington, D.C.