American Visa did not acquire the fintech startup Plaid. The companies have agreed to terminate the deal, reports The Wall Street Journal.
Visa cancels purchase of fintech startup Plaid due to US Department of Justice antitrust lawsuit
Back in November 2020, the ministry filed a civil antitrust lawsuit to block the deal. The merger of the companies, according to the US Department of Justice, would help maintain Visa’s monopoly on the online debit payment market.
“Plaid and other future fintech innovators are now free to develop potential alternatives to Visa’s online debit services,” said Assistant Attorney General Makan Delrahim.
Plaid and Visa signed a final deal for a $ 5.3 billion deal in early 2020. From that moment on, the Ministry of Justice was checking the transaction. After canceling the purchase, Visa will retain a minority stake in Plaid.
Plaid offers technology by which the user links their bank account to financial applications. After the announcement of the deal with Visa, the number of the company’s clients increased by more than 60%, the publication quotes the words of Plaid CEO Zach Perret. The Ministry of Justice clarifies that the startup earned about $ 100 million in 2019.
In the fall, Sberbank and Visa launched the Data Lab, which studies changes in customer behavior based on anonymized data.
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