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Discover Going International

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Dean Witter Discover & Company’s merger with Morgan Stanley Group, announced Wednesday morning, may have an impact on the future direction of the ‘Discover’, ‘BRAVO’ and ‘Private Issue’ credit cards. Company officials indicated yesterday the merger could facilitate the international expansion of Dean Witter’s credit cards. Furthermore cross-selling with Morgan Stanley products may enable Dean Witter to more fully develop its upscale cards: ‘BRAVO’ and ‘Private Issue’. For 1996 Dean Witter’s credit cards generated $53.6 billion in charge volume for a 6.5% marketshare. VISA generated an estimated $408.6 billion (49.4%); MasterCard an estimated $234.2 billion (28.3%) and American Express $131.0 billion (15.8%).

FULL STORY:
Dean Witter Discover & Company’s merger with Morgan Stanley Group, announced Wednesday morning, may have an impact on the future direction of the ‘Discover’, ‘BRAVO’ and ‘Private Issue’ credit cards. Company officials indicated yesterday the merger could facilitate the international expansion of Dean Witter’s credit cards. Furthermore cross-selling with Morgan Stanley products may enable Dean Witter to more fully develop its upscale cards: ‘BRAVO’ and ‘Private Issue’. For 1996 Dean Witter’s credit cards generated $53.6 billion in charge volume for a 6.5% marketshare. VISA generated an estimated $408.6 billion (49.4%); MasterCard an estimated $234.2 billion (28.3%) and American Express $131.0 billion (15.8%).

                                 Market Share Historical
                                (Major Credit Card Brands)
                                ($ Billions Charge Volume)

YEAR        VISA              MC                AMEX              DISC
TOTAL
1986:       $85.2             57.3              46.8              2.0
191.3
1987:       98.1              68.4              53.5              5.9
225.9
1988:       116.1             74.9              61.2              8.8
261.0
1989:       128.2             83.4              71.9              12.8
296.3
1990:       151.2             93.1              77.6              16.5
338.4
1991:       163.4             99.1              76.7              21.8
361.0
1992:       180.9             112.3             82.4              27.5
403.1
1993:       215.4             138.6             89.8              32.9
476.7
1994:       273.4             170.8             101.2             39.4
584.8
1995:       343.4             201.9             116.7             47.5
709.5
1996:       408.6             234.2             131.0             53.6
827.4

                                  Market Share Historical
                                (Major Credit Card Brands)
                                (% of Total Charge Volume)
YEAR        VISA              MC                AMEX              DISC

1986:       44.5%             30.0              24.5              1.0
1987:       43.4              30.3              23.7              2.6
1988:       44.5              28.7              23.4              3.4
1989:       43.3              28.1              24.3              4.3
1990:       44.7              27.5              22.9              4.9
1991:       45.3              27.5              21.2              6.0
1992:       44.9              27.9              20.4              6.8
1993:       45.2              29.1              18.8              6.9
1994:       46.8              29.2              17.3              6.7
1995:       48.4              28.4              16.5              6.7
1996:       49.4              28.3              15.8              6.5

SOURCE: CardWeb, Inc. (Frederick, Md)

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