Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Annelise Capossela/Axios

The Department of Justice antitrust lawsuit against Visa is important, not just for the outcome of a $5 billion fintech acquisition, but for the whole future of the industry.

Why it matters: While there are a lot of financial startups, very few of them are genuinely disruptive. In fact, many of them implicitly rely upon the Visa and Mastercard duopoly. The DOJ wants to ensure that there's still a chance that duopoly could face real competition.

How it works: Visa has a monopoly on debit purchases, and especially online debit purchases, where it has 70% of the market and earns $2 billion per year.

  • Plaid is one of the few companies in a position to develop a rival product — one where consumers could pay for purchases directly out of their bank account, much as they do when they use Venmo.
  • Visa decided to buy Plaid as an "insurance policy to protect our debit biz in the U.S.," in the words of Visa's CEO. That's pretty clearly anticompetitive behavior.

The big picture: It's not just Visa that relies on revenue from debit-card purchases; it's also all the neobanks, such as Chime, Varo, Aspiration, and N26.

  • Chime's CEO, Chris Britt, likes to tell people that he's not a bank, he's a payments company.
  • That means he's fully invested alongside Visa in having access to a continued stream of payments on Visa's rails, where Chime gets a cut of every transaction in a way that might not be the case with a rival product.

The bottom line: Payments tend by their nature to be monopolies. If there's hope for a competitor to Visa, it's good that the DOJ is keeping that hope alive. Even if that threatens the main income stream for other fintechs.

Go deeper

Updated Jan 28, 2021 - Axios Events

Watch: The future of financial inclusion

On Thursday, January 28, Axios' Dan Primack hosted a conversation on financial inclusion in the global economy, featuring Sen. Tina Smith (D-Minn.) and Institute for Women's Policy Research CEO C. Nicole Mason.

Sen. Tina Smith discussed the impact of the COVID-19 pandemic, uneven access to technology, and the role of systemic racism in growing economic inequities.

  • On what she thinks will be the most effective way to move the needle on financial equity: "Raising the minimum wage to $15 an hour...is one of the biggest things that we can do to address the wage inequality and savings potential for people of color in this country."
  • On Democrats' economic goals going into the new administration: "Addressing this kind of discrimination in financial services and creating more opportunities for people of color to get access to banking services, loans, access to capital is a big priority for us as [Democrats] move into the majority."

C. Nicole Mason discussed how job losses during the pandemic reflect existing gender and racial inequities, as well as the disproportionate burden of childcare on women.

  • On the scale of job losses for women: "Since the start of the pandemic, women have exited the workforce at four times the rate of men, so about 11 million women since the start of the pandemic have lost their jobs or exited the workforce."
  • On childcare as an equity issue: "With the pandemic, the burden [of childcare] doubled and tripled...We need a national childcare infrastructure where we keep up childcare as a public good and people can access it regardless of their income or ability."

Axios co-founder and CEO Jim VandeHei hosted a View from the Top segment with Executive Vice President and Chief Executive Officer of Europe, Visa Charlotte Hogg, who discussed digital and financial inclusion as a component of economic equity during the pandemic.

  • "We have to think about inclusion as being digitally, financially included. [From] small businesses who are increasingly important in driving towards a more inclusive recovery and who need to be digitally enabled to participate in that, [to] consumers who for various reasons may be vulnerable."

Thank you Visa for sponsoring this event.

Mike Allen, author of AM
3 hours ago - Politics & Policy

Biden adviser Cedric Richmond sees first-term progress on reparations

Illustration: "Axios on HBO"

White House senior adviser Cedric Richmond told "Axios on HBO" that it's "doable" for President Biden to make first-term progress on breaking down barriers for people of color, while Congress studies reparations for slavery.

Why it matters: Biden said on the campaign trail that he supports creation of a commission to study and develop proposals for reparations — direct payments for African-Americans.

Cyber CEO: Next war will hit regular Americans online

Any future real-world conflict between the United States and an adversary like China or Russia will have direct impacts on regular Americans because of the risk of cyber attack, Kevin Mandia, CEO of cybersecurity company FireEye, tells "Axios on HBO."

What they're saying: "The next conflict where the gloves come off in cyber, the American citizen will be dragged into it, whether they want to be or not. Period."