Trump Backs Credit Card Competition Act, Visa and Mastercard Shares Plunge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2026
0mins
Source: Benzinga
- Legislative Impact: Trump's support for the Credit Card Competition Act could force large banks to allow credit cards to route transactions over at least two unaffiliated networks, breaking Visa and Mastercard's near-duopoly, leading to respective stock declines of 4.5% and 3.8%.
- Market Structure Changes: According to Goldman Sachs, potential significant changes in the credit card market structure may pressure Visa and Mastercard in the near term, with a projected 5% drop in credit card volumes reducing their earnings by approximately 3% and 1%, respectively.
- Fee Reduction Risks: If U.S. interchange fees are pushed down to global norms, it could have broad implications for bank revenues and consumer spending behavior, as current U.S. fees sit around 200 basis points, significantly higher than in other major countries.
- Small Merchant Benefits: Large merchants may benefit from lower acceptance costs, but small merchants might see limited advantages, as processors may not fully pass on the benefits of lower fees, resulting in increased net take rates for them.
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Analyst Views on AFRM
Wall Street analysts forecast AFRM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AFRM is 95.50 USD with a low forecast of 83.00 USD and a high forecast of 114.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
12 Buy
6 Hold
0 Sell
Moderate Buy
Current: 65.360
Low
83.00
Averages
95.50
High
114.00
Current: 65.360
Low
83.00
Averages
95.50
High
114.00
About AFRM
Affirm Holdings, Inc. provides consumers with an alternative to traditional payment options. The Company is engaged in building a payment network. Its platform comprises three core elements: point-of-sale payment solutions for consumers, merchant commerce solutions, and a consumer-focused app. Its Affirm App and Website provide tailored offers from merchants based on consumers' preferences. Consumers can apply at affirm.com or via the Affirm App and, upon approval, receive a single-use virtual card to use online or in-store. Its Affirm Card allows consumers to link a bank account to pay in full, or apply to pay overtime through the Affirm App. It offers users an in-app post-purchase feature that allows them to instantly apply to convert any eligible debit transaction into an installment loan. Through the Affirm app and in partnership with Cross River Bank, it offers a savings account, with no minimum deposit requirements or fees.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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