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Merger Implications and Network Synergies in the Finance Industry
The chapter explores the potential merger between major issuers in the finance industry, discussing the incorporation of networks like Discover, Pulse, and Diners Club. It analyzes the impact on relationships with networks, the pursuit of synergy to reduce fees, and the comparison between open and closed loop systems. The conversation predicts a future shift towards owning both customer and network, with a focus on how the merger could affect marginalized customer bases and financial services regulation.