Student Loan Corporation
2010
Why
Discover Financial Services acquired Student Loan Corporation in 2010.
Discover Financial Services
Consumer Credit CardsFounded 1985- HQ today: Riverwoods, Illinois, United States
Reviewed by Swet Parvadiya
Company data updated: October 2026
Acquisitions
Discover Financial Services Acquisitions
4
Major Deals Covered
$476M
Disclosed Deal Value
What are Discover Financial Services's biggest acquisitions?
Discover Financial Services's largest disclosed acquisition here is PULSE EFT Association for $311M in 2005. This page covers 4 major deals from 1985 to 2010, each with its price where disclosed and the reason behind it.
- Major deals covered
- 4
- Largest deal
- PULSE EFT Association ($311M)
- First deal
- 1985
- Most recent
- 2010
| Company | Year | Price | Purpose |
|---|---|---|---|
| Greenwood Trust Company | 1985 | Undisclosed | Discover Financial Services acquired Greenwood Trust Company in 1985. |
| PULSE EFT Association | 2005 | $311.0M | Acquired leading nationwide ATM and PIN debit network to enter the bank debit routing market. |
| Diners Club International | 2008 | $165.0M | Acquired historic charge card network from Citigroup to expand global international acceptance. |
| Student Loan Corporation | 2010 | Undisclosed | Discover Financial Services acquired Student Loan Corporation in 2010. |
- What companies has Discover Financial Services bought?
- Major acquisitions by Discover Financial Services documented here include PULSE EFT Association (2005), Diners Club International (2008), Student Loan Corporation (2010) and Greenwood Trust Company (1985).
- What is Discover Financial Services's most recent acquisition?
- The most recent Discover Financial Services acquisition documented here is Student Loan Corporation, in 2010.
Diners Club International
2008
$165M
Why
Acquired historic charge card network from Citigroup to expand global international acceptance.
Impact
Expanded Discover card acceptance into more than 200 countries and territories.
Outcome
Global network brand within Discover.
PULSE EFT Association
2005
$311M
Why
Acquired leading nationwide ATM and PIN debit network to enter the bank debit routing market.
Impact
Connected Discover to over 4,000 US financial institutions and millions of ATM terminals.
Outcome
Core operating division of Discover Global Network.
Greenwood Trust Company
1985
Why
Discover Financial Services acquired Greenwood Trust Company in 1985.
Discover Financial Services's Growth & Acquisition Strategy
Before the deal, Discover had pulled back on new account growth while it fixed compliance problems. Under Capital One the strategy has shifted to network scale: migrating Capital One debit cards to Discover (about 25 million done by mid-2026), testing Capital One credit cards on the network, and widening acceptance abroad.
How Discover Financial Services Makes Money
Discover makes money two ways. As a bank, it lends to consumers through Discover-branded credit cards and personal loans and earns net interest income on those balances, funded largely by online savings and CD deposits rather than branches. As a network, it earns discount and interchange revenue when merchants accept Discover cards and processing fees when banks route debit and ATM transactions over PULSE. Unlike Visa and Mastercard, which do not lend, Discover keeps both the lending spread and the network economics on its own cards. Interest income on card loans is by far the largest piece.
Discover Financial Services Acquisitions FAQ
What are the most significant corporate acquisitions in Discover's history?
Key historical acquisitions include the PULSE EFT Association (2005 for $311 million), Diners Club International (2008 for $165 million from Citigroup), and the private student loan portfolio of The Student Loan Corporation (2010 from Citi).
Why was the 2005 acquisition of the PULSE network a turning point for Discover?
Acquiring PULSE for $311 million gave Discover immediate control over one of America's largest electronic funds transfer networks, connecting over 4,000 banks and credit unions and securing substantial ATM and PIN debit volume.
How did the 2008 acquisition of Diners Club International transform Discover globally?
Discover acquired Diners Club International from Citigroup for $165 million, instantly gaining a globally recognized brand and establishing merchant acceptance across more than 185 countries outside the United States.
Why did Discover acquire The Student Loan Corporation's assets in 2010?
Discover acquired $4.2 billion in private student loan assets and origination infrastructure from Citigroup's Student Loan Corporation, instantly establishing Discover Student Loans as one of the top private student lenders in the US.
What network alliance agreements has Discover executed across the globe?
Discover has signed bilateral payment alliances with major international payment networks, including China UnionPay, Japan Credit Bureau (JCB), South Korea's BC Card, India's RuPay, and Brazil's Elo, enabling billions of cardholders to transact smoothly across each other's networks.
What fintech partnerships has Discover forged in digital payments?
Discover has partnered with leading fintech platforms including PayPal, Apple Pay, Google Pay, Samsung Pay, and Sezzle, integrating Discover cards and network tokens natively into digital mobile wallets.
Why did Discover sell its UK consumer credit business (Morgan Stanley Bank International)?
In 2008, Discover sold its UK credit card operations to Barclays to eliminate overseas credit exposure and focus capital on expanding its highly profitable US consumer lending and global payment networks.
What are the regulatory approval hurdles for Capital One's acquisition of Discover?
The $35.3 billion transaction requires regulatory approvals from the Federal Reserve Board, the Office of the Comptroller of the Currency (OCC), and antitrust review by the Department of Justice (DOJ) regarding consumer banking competition.
Does Discover own Diners Club?
Yes, in 2008, Discover executed a highly strategic $165 million acquisition of Diners Club International from Citigroup. Because Discover had virtually no acceptance outside the US, this deal instantly gave Discover cards access to millions of merchants globally.
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