USA Takes Legal Action Against Visa for Alleged Monopoly in Debit Payments

The U.S. Department of Justice (DOJ) has launched an antitrust lawsuit against Visa, accusing the payments giant of maintaining a monopoly in the debit payments sector.

Filed in federal court on September 24, the lawsuit claims that Visa uses exclusivity agreements and the threat of penalties to limit competition and safeguard its market dominance.

Visa reportedly controls about 60% of the U.S. debit transactions market, generating $7 billion in transaction fees. U.S. Attorney General Merrick Garland stated that Visa’s behavior is monopolistic, leading to inflated fees. He explained that these costs are passed down to consumers through higher prices or reduced service quality, ultimately affecting a wide range of goods and services.

The lawsuit also suggests that Visa leverages its market power to form partnerships with potential competitors, further limiting market alternatives and keeping consumer costs elevated.

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Earlier this year, some analysts speculated that Visa’s dominance in the payments space could be threatened by the rise of stablecoins. Jan-Erik Asplund, co-founder of Sacra, predicted that stablecoins, backed by fiat currency, could eventually overtake Visa in facilitating international transactions due to their convenience.

Visa, however, dismissed these concerns, arguing that data on stablecoins is misleading and that the risks of losing its market position are overstated. Outside the U.S., stablecoins have already started to gain traction over fiat in some regions.

Kosta Gushterov