When it comes to choosing a credit card, there are many different options to choose from.
Mastercard is a popular option that offers a variety of benefits and rewards, but it’s important to know what the competition has to offer.
In this article, we’ll take a closer look at Mastercard competitors, including Discover, Visa, Capital One, American Express and PayPal, to help you make an informed decision.
Mastercard Competitors
Discover
Overview and History: Discover was founded in 1985 and is headquartered in Riverwoods, Illinois.
It is the fourth-largest credit card issuer in the United States behind Visa, Mastercard, and American Express. In addition to credit cards, Discover also offers banking services and loans.
Key Strengths and Features: Discover credit cards come with a variety of features and benefits, including 5% cashback in rotating categories, unlimited 1% cashback on all other purchases, no annual fee, and free FICO credit scores.
Market Share and Customer Satisfaction: Discover holds approximately 3% market share of the U.S. credit card market. It’s 2019 J.D. Power U.S. Credit Card Satisfaction Study score was 842 out of 1000.
Differentiating Factors: One of Discover’s key distinguishing features is its cashback rewards program, which enables cardholders to earn cashback on every purchase.
Additionally, its no annual fee policy is attractive to consumers looking to save money.
Visa
Overview and History: Visa was founded in 1958 and is headquartered in Foster City, California.
Today, it is the largest credit card network in the world by far, with over 3.3 billion cards in circulation globally.
Key Strengths and Features: Visa credit cards offer a range of features and benefits, such as zero liability protection for fraudulent purchases, travel assistance, and emergency card replacement.
Market Share and Customer Satisfaction: Visa dominates the global credit card market with a 53% share, according to The Nilson Report.
In recent years, it has also received high marks for customer satisfaction, earning an 819 out of 1000 in the J.D. Power 2019 U.S. Credit Card Satisfaction Study.
Differentiating Factors: One of Visa’s key distinguishing features is its near-universal acceptance anywhere in the world where credit cards are accepted. Its also offers a range of credit card options from cashback to travel rewards.
Capital One
Overview and History: Capital One was founded in 1994 and is headquartered in McLean, Virginia. It is the 10th largest bank in the United States by assets and the third-largest credit card issuer in the country.
Key Strengths and Features: Capital One credit cards offer a variety of features and benefits, including cashback rewards, no foreign transaction fees, and travel perks such as rental car insurance and roadside assistance.
Market Share and Customer Satisfaction: Capital One holds approximately 4% of the U.S. credit card market and earned 810 out of 1000 in the J.D. Power 2019 U.S. Credit Card Satisfaction Study.
Differentiating Factors: One of Capital One’s distinguishing features is its cashback rewards program, which allows cardholders to earn cashback on every purchase.
Its travel perks and no foreign transaction fees are also attractive to those who frequently travel internationally.
American Express
Overview and History: American Express, or Amex, was founded in 1850 and is headquartered in New York City.
It is one of the most recognized credit card brands in the world, known for its exclusive rewards and travel benefits.
Key Strengths and Features: Amex credit cards offer a range of exclusive rewards and benefits, including airport lounge access, travel credits, and cashback on select purchases.
Market Share and Customer Satisfaction: While Amex hold about 4% of the U.S. credit card market, it is well-known for its customer service, earning 838 out of 1000 in the J.D. Power 2019 U.S. Credit Card Satisfaction Study.
Differentiating Factors: One of Amex’s key distinguishing feature is its extensive rewards and benefits, including the Platinum collection of cards which offers premium travel benefits, exclusive access to events like ski resorts and sporting events, and lounge access.
PayPal
Overview and History: PayPal was founded in 1998 and is headquartered in San Jose, California. While most often associated with online payments, PayPal also offers a credit card option that can be used in stores as well as online.
Key Strengths and Features: PayPal’s credit card offers 2% cash back on every purchase, unlimited cash back transfers to a bank account or Paypal account, and the ability to use your rewards immediately after you earn them.
Market Share and Customer Satisfaction: PayPal’s credit card doesn’t hold a significant share of the credit card market yet, but its customer satisfaction rate has been high, earning 817 out of 1000 in the J.D. Power 2019 U.S. Credit Card Satisfaction Study.
Differentiating Factors: PayPal’s credit card highlights flexibility in rewards and usage, as cardholders can use their rewards immediately in-store and online, or transfer to their PayPal account.
Comparison Metrics
Services and Offerings
Discover, Visa, Capital One, American Express, and PayPal all offer a variety of credit cards and payment solutions.
While Discover and Capital One specialize in cash-back rewards, Visa, American Express, and PayPal offer more diverse rewards programs including travel and exclusive perks.
Market Presence and Reach
When it comes to global presence and acceptance, Visa is the clear leader, with over 200 countries where its payment solutions are accepted.
Meanwhile, American Express has a smaller global reach but is known for its prestige and exclusive benefits.
Discover’s market presence is limited to the United States while PayPal primarily operates in the United States and Europe.
Customer Satisfaction
In terms of customer satisfaction, all five companies earn above-average scores, with Capital One and Discover receiving particularly high marks.
Visa also received high scores of customer satisfaction.
Frequently Asked Questions
Mastercard holds approximately 29% of the global credit card market, behind Visa which has a 53% share.
What are the key differences between Mastercard and Visa?
Both Mastercard and Visa offer similar payments solutions and benefits, but Visa has a wider global reach and more cards in circulation.
Which competitor offers the best rewards programs?
Answer: Discover and Capital One are known for their cashback rewards programs, while American Express and Visa offer more diverse rewards options with exclusive perks.
How does Mastercard’s customer satisfaction rate compared to its rivals?
Mastercard’s customer satisfaction rate is generally comparable to its rivals, with high scores from JD Power satisfaction studies.
Can I use all Mastercard competitors internationally?
Answer: While many credit cards offer global acceptance, it is important to check with the specific company to ensure that their payment solutions are accepted in the country where you will be traveling.
Conclusion
While Mastercard is a popular and well-regarded payment solution, it is important to consider what the competition has to offer when choosing a credit card.
Discover, Visa, Capital One, American Express, and PayPal all have a lot to offer, from unique rewards programs to global acceptance.
Be sure to evaluate your individual needs and preferences before making a decision and find the card that offers the best fit for you.
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