The deal allows the giant payments network to “eliminate a nascent competitive threat,” states the government’s lawsuit, filed in a Northern California federal court. It references Visa CEO Al Kelly’s comments that the acquisition gives it “an insurance policy” against a “threat to our important U.S. debit business.” Visa said the DoJ doesn’t understand Plaid’s business or the competitiveness of the payments market. (CNBC)

Talking point: Plaid’s APIs connect financial-services platforms. It’s how challenger personal finance, savings and transfer apps get access to banking and purchase information. These platforms—think Venmo or Acorns—could divert an increasing share of transactions away from the credit and debit cards on which payment networks like Visa have built the bulk of their business. Rival Mastercard similarly announced a deal for Plaid competitor Finicity in June.