Visa Abandons $5.3B Acquisition of Plaid Over DOJ Antitrust Concerns

The Department of Justice announced Tuesday the deal is off.

Jan 12, 2021 at 10:13 p.m. UTC
Updated Sep 14, 2021 at 10:55 a.m. UTC

Visa called off its $5.3 billion acquisition of Plaid, the fintech firm serving as a fiat bridge for a number of crypto and decentralized finance (DeFi) applications.

  • The U.S. Department of Justice (DOJ) announced Tuesday the two companies have officially called off their planned merger in the wake of the DOJ's lawsuit last year that sought to block the deal.
  • The DOJ filed a civil antitrust suit on Nov. 5, 2020, to stop the merger, claiming Visa is a monopolist in online debit, charging both consumers and merchants billions of dollars in fees each year to process online payments. 
  • "Now that Visa has abandoned its anticompetitive merger, Plaid and other future fintech innovators are free to develop potential alternatives to Visa's online debit services," Assistant Attorney General Makan Delrahim said in a statement. "With more competition, consumers can expect lower prices and better services."
  • As CoinDesk previously reported, Plaid has worked with Coinbase and at least two decentralized finance (DeFi) startups.
  • The DOJ reported Plaid earned approximately $100 million in revenue in 2019.
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Binance's Bahrain License Upgraded for More Crypto Services

Binance Bahrain was granted a preliminary license in December and full license in March.

Binance Bahrain was granted a preliminary license in December and full license in March.

CoinDesk - Unknown
2
CoinDesk - Unknown
Gaming DAO Merit Circle and YGG Caught in DAO Governance Strife

Merit Circle members want to refund Yield Guild Games' investment and cancel an agreement between the two, claiming there’s not been enough value-add by the gaming guild giant.

Merit Circle members want to refund Yield Guild Games' investment and cancel an agreement between the two, claiming there’s not been enough value-add by the gaming guild giant.

CoinDesk - Unknown
3
CoinDesk - Unknown
Former Binance Execs Create $100M Fund to Spur Crypto Adoption in Emerging Markets: Report

Old Fashion Research was formed by Ling Zhang and Wayne Fu, previously Binance's vice president of M&A and head of corporate development respectively.

Old Fashion Research was formed by Ling Zhang and Wayne Fu, previously Binance's vice president of M&A and head of corporate development respectively.

CoinDesk - Unknown
4
CoinDesk - Unknown
Solana, Dogecoin Tokens Dip as Futures Suggests Bearish Sentiment

Choppy trading in broader markets failed to temper a gradual dip in major cryptocurrencies, with some sliding as much as 8% in the past 24 hours.

Choppy trading in broader markets failed to temper a gradual dip in major cryptocurrencies, with some sliding as much as 8% in the past 24 hours.

CoinDesk - Unknown