Visa canceled its deal to buy fintech startup Plaid for $ 5.3 billion after the US Department of Justice tried to block the deal on antitrust grounds.
“We are confident that we would have prevailed in court, as Plaid’s capabilities are complementary to Visa’s, not competitive,” Al Kelly, chief executive officer of Visa, said in a statement on Tuesday.
However, the company decided to drop the deal to avoid “long and complex litigation,” he said.
The DoJ decided to block the acquisition in early November, claiming that Plaid planned to build a “bank payments network that would compete with Visa” and describing fintech as “uniquely positioned” to use its established connections to “enter the market. payments and disrupt Visa’s monopoly ”.
The move is a blow to Visa’s efforts to add fast-growing fintech services to its payments business. Plaid provides so-called “aggregator” software that allows fintechs and other financial services companies to access customer banking information.