The news: Capital One is funneling marketing spend toward boosting its credit card portfolio and enhancing premium benefits for its Venture X card. The issuer spent $1.6 billion on marketing for Q3 2026, a 14% increase YoY, per the company’s earnings. 

How we got here: Capital One is rebalancing its cardholder base after the Discover merger. 

The issuer has long relied on a barbell strategy, serving low-FICO-score customers with starter credit cards while offering wealthier clientele cards that carry steep annual fees. However, after Capital One’s acquisition of Discover, the bank initiated a “gradual mix change of its new originations and loans,” to get back to pre-pandemic levels. Only 27% of the McLean-based bank’s consumers have FICO scores at or below 660 in Q3 2026, down from 31% before the close of the deal. 

As the Discover brownout continues, Capital One is now concentrating on the other end of the barbell: the premium consumer. Going into 2027, the issuer plans to pour even more dollars into marketing to acquire these heavy spenders, especially as rivals also spend heavily for originations. American Express, for example, spent $6.3 billion on marketing in 2025, outpacing Capital One’s $5.9 billion. 

Capital One is trying to differentiate itself through its closed-loop network, where it can deliver richer data for its financial media network (FMN), Capital One Shopping. A portion of new marketing spend will go back into the Discover brand. 

The issuer is making strides in onboarding its cards onto the Discover network. Capital One posted $250 billion in credit card purchase volume, versus $190 billion worth of global network volume (up 25% YoY). 

Recommendations for issuers: The fight to acquire the top 10% of US households as cardholders will require robust marketing budgets and rewards. 

Cash-based rewards aren’t enough; issuers should consider experiential marketing strategies to attract and retain new members. 

• Lounge access. Decongesting lounge spaces at major hubs can significantly boost customer satisfaction.
• Experience-based rewards. Younger consumers are hungry for memory-making in-person events beyond a price tag. Tie-ups with key artists and sporting events can make consumers feel that their payment provider is enriching their cultural life.

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