(Reuters) – Payment processor Visa Inc’s $5.3 billion deal to buy fintech startup Plaid Inc is facing antitrust scrutiny at the U.S. Justice Department, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.
The Justice Department could decide soon whether it will sue to block the deal, the report said.
After examining the planned purchase for much of this year, the department is concerned it could limit nascent competition in the payments sector, the report added.
The Justice Department is also preparing for potential litigation, including lining up witnesses for a trial, according to the WSJ report.
Visa and the Department of Justice did not immediately respond to Reuters’ requests for comment. Plaid declined to comment.
The deal, which would boost Visa’s access to the fintech space, was announced in January.
Reporting by Niket Nishant in Bengaluru; Editing by Maju Samuel