OPINION: Allow merger to provide Visa/Mastercard with meaningful competition

Published 9:40 am Wednesday, November 20, 2024

The proposed merger between Capital One and Discover, combined with their $265 billion Community Benefits Plan (CBP), presents a rare and transformative opportunity to strengthen communities across the nation—especially those underserved by traditional financial institutions.

As President of Produce Row Property Management Company, I’ve seen firsthand the impact that dedicated investment in small businesses and communities can have on economic growth and resilience.

The merger between Discover and Capital One could bring significant benefits by intensifying competition with Visa and Mastercard, who currently dominate the credit card network market. By enabling Capital One to issue cards on Discover’s network, this merger would enhance Discover’s competitive position, likely resulting in improved products, services and pricing across the industry. Experts suggest that this increased competition will benefit consumers by reducing fees and elevating service quality.

Capital One’s strong record on credit access would also be extended, offering more support for low- and moderate-income communities and first-time cardholders. Small businesses could gain greater negotiating power as credit card networks compete for their transactions, resulting in better deals and lower processing costs.

At Produce Row, we support a network of Portland businesses that bring real products and services to life, and I know from experience that access to reliable funding is essential to their success. The CBP’s $200 billion commitment to lending for low- and moderate-income individuals and communities is a substantial step forward.

This funding could create unprecedented opportunities for entrepreneurs in Portland, where small businesses drive the local economy. When these entrepreneurs have the resources to grow, they create jobs, boost local spending, and foster community-wide growth.

Additionally, the CBP’s $15 billion commitment to small business lending in low- and middle-income areas speaks directly to the needs of entrepreneurs facing barriers to traditional financing. I am especially hopeful for what this could mean for Oregon, where minority- and women-owned businesses make significant contributions to the local economy.

Capital One’s CBP recognizes that by removing financial obstacles, we can empower these entrepreneurs to build sustainable businesses that create jobs and opportunity in their communities.

Equally impactful is the CBP’s $5 billion commitment to diverse supplier spending. The businesses within Produce Row have shown me that diverse perspectives and resources create a more vibrant, competitive, and inclusive business environment.

By providing targeted support to minority-owned businesses, the CBP not only creates opportunities but builds a more equitable marketplace. This aligns closely with the work I do on boards such as The Street Trust and the PGE Foundation, where equity and access are central to every decision.

A key highlight of this plan is its $44 billion allocation for community development financing, particularly for affordable housing. Stable, affordable housing is essential to thriving communities, yet it remains a challenge in Portland and many other cities. Capital One’s investment in affordable housing and down payment assistance will give more individuals and families a secure footing, helping working families build wealth and break cycles of economic instability, which, in turn, strengthens neighborhoods and provides a stable foundation for local businesses.

Capital One’s collaboration with organizations like the National Association for Latino Community Asset Builders also reflects the inclusive planning behind this CBP. Through partnerships with groups that understand community needs, Capital One has crafted a plan with both targeted and meaningful impacts. This approach reinforces my confidence that the CBP will deliver on its commitments and create long-term, positive change.

As federal regulators evaluate the Capital One-Discover merger, I urge them to consider the transformative potential of this plan to uplift communities by investing in individuals and small businesses. It’s a strategy that prioritizes sustainable, equitable growth, and I’m excited to see how this plan could shape a more prosperous future for Portland and communities nationwide.

Randolph L. Miller of Portland is president of Produce Row Property Management Co. He also serves as diplomatic consul for Lithuania. Miller has been active civically in the Portland area, including more than 20 years with World Oregon, an organization that brings the world to Oregon residents in many ways.