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Visa, Plaid call off merger following antitrust pressure – Washington, District of Columbia

Washington, District of Columbia 2021-01-12 18:22:16 –

Charlotte, NC (AP) — Visa Inc. canceled its $ 5.3 billion acquisition plan for payment processing technology firm Plaid on Tuesday …

Charlotte, NC (AP) — Visa Inc. suspends planned $ 5.3 billion purchase of payment processing technology firm Plaid on Tuesday due to a Justice Department antitrust lawsuit filed last year to block transactions did.

Plaid provides the infrastructure that allows consumers and businesses to pay directly from their bank accounts. Services such as Venmo, SoFi, Stripe, and TransferWise all allow consumers to transfer money from their bank account to another party without using the debit card infrastructure primarily controlled by Visa and its competitor Mastercard. I am using Plaid as.

After Visa bid to buy Plaid, politicians and antitrust experts said the deal would allow Visa, already the world’s largest payment processor, to pay for goods and services by customers and businesses. He claimed to be even more powerful.

A lawsuit in the Justice Department argued, among other things, that the deal would allow Visa to “maintain its monopoly position and super-competitive prices in online debit.”

In a statement, Visa still believes that transactions between two San Francisco-based companies will benefit consumers, financial institutions and developers, but to avoid long-term court battles. He said he had decided to destroy it.

“It’s been a year since we first announced our intention to buy Prad, and it’s been a long time before the protracted and complex proceedings are fully resolved,” Visa CEO Al Kelly said in a statement. Will take. ”

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