The newest general purchase payment card scheme in the US–Discover, which was launched by Sears in 1986–has just bought the oldest general purchase payment card scheme in the U.S. (and elsewhere)–Diners Club, which launched the modern card in 1950 in Manhattan.

Diners Club is the poster child for why first-mover advantages sound good in textbooks but seldom apply in real world markets. This first mover lost its lead within a decade, and today, when late coming rivals such as Visa are commanding market caps of over $50 billion just for the switch, this closed loop card system could only fetch a paltry $165 million. Smart move for Discover, though–it expands this domestic card system internationally for chump change. Is this a first step in the creation of an energetic, innovative Discover?