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A merger of Wells Fargo and Wachovia would create a debit card giant. In the debit card market, Wells is the second-largest issuer, with 17.5 million cards on issue as of the end of 2007, according to PaymentsSource.com. Wachovia is the fifth largest with 10.4 million cards, giving the companies a combined total of 27.9 million debit cards, most of which are Visa-branded. Both banks also issue a relatively few ATM cards that do not support signature-based transactions. "Wells Fargo will consolidate its spot as the second-largest issuer of debit cards. However, it will be within reach of Bank of America," says Adil Moussa, an analyst with Aite Group. BofA at the end of December had issued an estimated 33.4 million debit cards, according to PaymentsSource.com "The new Wells Fargo [would] boast approximately $90 billion in debit transactions. Wells Fargo, a Visa issuer, also will be in a better place to negotiate fees with Visa," Moussa says.
