The Globe and Mail reports in its Wednesday edition that Capital One Financial's $35.3-billion (U.S.) deal for Discover Financial Services would create new competition for payment giants Visa and Mastercard, potentially helping smooth the path for regulatory approval. A Reuters dispatch to The Globe says that the all-stock deal announced on Monday would create the biggest U.S. credit-card issuer, but it would also give Capital One access to Discover's payment network, allowing it to rely less on Visa and Mastercard, analysts said. With some lawmakers having accused Visa and Mastercard of a "duopoly," Capital One's promise to boost payment competition will be key as it begins to navigate political and regulatory hurdles in coming months, including from bank agencies and potentially the Justice Department. "This potential deal could ultimately secure regulatory approval, but it would face gale-force headwinds from a Washington that is deeply skeptical of consolidation," Isaac Boltansky, director of policy research for brokerage BTIG, said in a note. However, he added, "There are some in Washington who are wary of Visa and Mastercard's duopoly, which suggests that bolstering a competitor could be viewed positively."