FinTech: Visa Under The DoJ’s Anti-Trust Lens (WSJ)

October 28, 2021 | FinTech, News

The US Department of Justice is conducting an anti-trust inquiry of Visa, the largest card network in the US.

According to the Wall Street Journal, the US Department of Justice is probing the allegedly cosy relationships Visa (NYSE: V)  had with certain large fintechs as part of its anti-trust investigation against the card giant. (FINANCE MAGNATES)

The WSJ said the investigation wants to unearth details of financial incentives that Visa allegedly paid to fintechs Stripe, Square (NYSE: SQ) and PayPal (NASDAQ: PYPL) to keep them from using other card networks or money-movement technologies.

However, the current status of the investigation was unclear, nor whether the DoJ had come to a conclusion. The Journal also drew attention to another investigation concerning Visa and Square’s Cash App deal entered six years ago.

The WSJ quoted certain anonymous sources to say: “Visa offered to lower fees for Square and to send performance payments to the company that would get bigger when Square sent more transactions over Visa.”

Visa declared its quarterly results on Tuesday. It refrained from issuing a comment on the matter.

In March it was reported that the DoJ had launched an antitrust investigation into the company’s practices regarding debit-card transactions.

The DoJ was said to be examining its rules for routing transactions in physical stores and online.

Related Story: Visa To Acquire European Open Banking Platform Tink For $2.2B

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