Trump Backs Credit Card Competition Act, Visa and Mastercard Shares Plunge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2026
0mins
Should l Buy AFRM?
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.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AFRM?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on AFRM
Wall Street analysts forecast AFRM stock price to rise
22 Analyst Rating
17 Buy
5 Hold
0 Sell
Strong Buy
Current: 49.010
Low
65.00
Averages
87.72
High
107.00
Current: 49.010
Low
65.00
Averages
87.72
High
107.00
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.
Oil Prices Surge Amid Truce Doubts; Meta Stock Rallies
- Oil Price Surge: U.S. oil prices jumped 8% on Thursday as traders questioned the validity of the U.S.-Iran truce, pushing West Texas Intermediate futures back over $100 per barrel, indicating potential economic implications from oil price volatility despite a flat S&P 500.
- Meta Stock Recovery: Meta Platforms saw its shares rise over 2.5% on Thursday, following a 6.5% increase the previous day due to the announcement of its new AI model, Muse Spark, reflecting a renewed market confidence in its innovation capabilities.
- Capital One Upgrade: JPMorgan upgraded Capital One to an overweight rating with a price target of $213 per share, suggesting an 8% upside from current levels, despite the stock being down over 20% year-to-date, highlighting limited downside risk unless new challenges arise.
- Rapid Stock Review: Stocks mentioned in Thursday's rapid-fire segment included Constellation Brands, Texas Instruments, McCormick, and Unilever, indicating a diverse investment interest among investors as they explore opportunities across various sectors.
See More
MongoDB and Bullish Shares See Active Options Trading
- MongoDB Options Volume: MongoDB Inc experienced options trading volume of 9,540 contracts, equating to approximately 954,000 shares, which represents about 67.4% of its average daily trading volume of 1.4 million shares over the past month, indicating heightened investor interest in the stock.
- High Volume Call Options: Within MongoDB, the $500 strike call option saw 859 contracts traded today, representing around 85,900 underlying shares, reflecting market expectations for future price increases that could influence investor buying decisions.
- Bullish Shares Options Activity: Bullish Ordinary Shares recorded an options trading volume of 8,389 contracts, approximately 838,900 shares, or about 65.5% of its average daily trading volume of 1.3 million shares over the past month, showcasing the stock's market activity.
- Bullish Call Options Trading: For Bullish, the $40 strike call option traded 1,773 contracts today, representing about 177,300 shares, indicating investor optimism regarding the stock's future performance, which may drive the stock price higher.
See More
Mastercard Accelerates AI Payment Initiatives in Southeast Asia
- AI Payment Innovation: Mastercard's rollout of authenticated agentic transactions in Singapore and Malaysia signifies a shift towards AI-driven commerce, enhancing user trust in autonomous decision-making through the integration of tokenization and verifiable intent, thereby improving transaction security.
- Regional Partnership Strategy: The collaboration with United Overseas Bank reflects Mastercard's strategy to establish scalability within Southeast Asia's fragmented financial ecosystem, aiming to enhance its market position through regional partnerships that address market fragmentation.
- Governance Layer Enhancement: The verifiable intent developed alongside Google creates a tamper-resistant record of user authorization, bridging the trust gap between consumers, banks, and merchants, which could become a foundational standard for global AI-driven transactions, promoting industry growth.
- Establishment of Innovation Center: Mastercard's plan to set up an AI Center of Excellence in Singapore aims to deepen innovation, cybersecurity, and regulatory alignment, reflecting the recognition that scaling AI in payments requires not only technology but also robust oversight and ecosystem readiness.
See More
Affirm: Stability or Increased Uncertainty on the Horizon?
Company Overview: Affirm Holdings is a key player in the buy-now-pay-later (BNPL) sector, reporting significant growth in gross merchandise volume, revenue, and net income in its recent quarterly results.
Financial Performance: The company achieved a gross merchandise volume of $13.8 billion, a 36% increase year-over-year, with revenue climbing 30% to $1.12 billion and net income rising 61% to $130 million.
Market Position and Risks: Despite strong financials, analysts express caution due to potential credit risks and competition from established players like PayPal and Klarna, as well as rising delinquency rates in the credit market.
Investment Outlook: Affirm is seen as a high-risk, high-reward investment, with analysts generally bullish on its growth potential, but investors are advised to be wary of associated risks before investing.
See More
Financial Stocks Struggle, Consumer Finance Takes Major Hit
- Consumer Finance Decline: Year-to-date, consumer finance stocks have plummeted by 21%, with Robinhood, Affirm, and SoFi down 39%, 40%, and 38% respectively, reflecting investor concerns over economic slowdown and rising credit risks, leading to a valuation correction for these previously high-performing stocks in 2025.
- Payment Processor Advantage: Visa and Mastercard, as the largest payment processors in the U.S., account for 76% of credit card transaction volume and 69% of cards in circulation, and due to their lack of credit risk exposure, they maintain stable cash flows during economic downturns, with expectations of double-digit earnings growth in 2026.
- Market Dominance: S&P Global and Moody's control 80% of the credit rating market, and with its strong positions in market intelligence and indexing, S&P Global has historically performed well under various market conditions, with a projected 5% increase in credit issuance in 2026.
- Analyst Optimism: 93% of analysts rate Mastercard and S&P Global as
See More
Financial Stocks Decline, Visa and Mastercard Stand Out
- Overall Financial Sector Decline: Financial stocks have dropped approximately 10% year-to-date, with consumer finance stocks suffering the most, down 21%, significantly impacting the entire financial sector.
- Visa and Mastercard's Market Position: As the largest payment processors in the U.S., Visa and Mastercard account for 76% of credit card purchase volume and 69% of all cards in circulation, and their lack of credit risk allows them to perform relatively well during economic downturns.
- Analyst Optimism for Visa and Mastercard: With 93% of analysts rating Mastercard as a 'buy' with a price target of $669, indicating a 34% upside, and 92% rating Visa with a target of $408, also suggesting a 34% potential gain, both companies are viewed favorably.
- S&P Global's Resilient Performance: As a dominant player in the credit ratings market, S&P Global, alongside Moody's, controls 80% of the market share, with a projected 5% increase in credit issuance in 2026, and its status as a Dividend King with 53 consecutive years of dividend increases underscores its financial strength.
See More
Oil Prices Surge Amid Truce Doubts; Meta Stock Rallies
- Oil Price Surge: U.S. oil prices jumped 8% on Thursday as traders questioned the validity of the U.S.-Iran truce, pushing West Texas Intermediate futures back over $100 per barrel, indicating potential economic implications from oil price volatility despite a flat S&P 500.
- Meta Stock Recovery: Meta Platforms saw its shares rise over 2.5% on Thursday, following a 6.5% increase the previous day due to the announcement of its new AI model, Muse Spark, reflecting a renewed market confidence in its innovation capabilities.
- Capital One Upgrade: JPMorgan upgraded Capital One to an overweight rating with a price target of $213 per share, suggesting an 8% upside from current levels, despite the stock being down over 20% year-to-date, highlighting limited downside risk unless new challenges arise.
- Rapid Stock Review: Stocks mentioned in Thursday's rapid-fire segment included Constellation Brands, Texas Instruments, McCormick, and Unilever, indicating a diverse investment interest among investors as they explore opportunities across various sectors.
See More
MongoDB and Bullish Shares See Active Options Trading
- MongoDB Options Volume: MongoDB Inc experienced options trading volume of 9,540 contracts, equating to approximately 954,000 shares, which represents about 67.4% of its average daily trading volume of 1.4 million shares over the past month, indicating heightened investor interest in the stock.
- High Volume Call Options: Within MongoDB, the $500 strike call option saw 859 contracts traded today, representing around 85,900 underlying shares, reflecting market expectations for future price increases that could influence investor buying decisions.
- Bullish Shares Options Activity: Bullish Ordinary Shares recorded an options trading volume of 8,389 contracts, approximately 838,900 shares, or about 65.5% of its average daily trading volume of 1.3 million shares over the past month, showcasing the stock's market activity.
- Bullish Call Options Trading: For Bullish, the $40 strike call option traded 1,773 contracts today, representing about 177,300 shares, indicating investor optimism regarding the stock's future performance, which may drive the stock price higher.
See More
Mastercard Accelerates AI Payment Initiatives in Southeast Asia
- AI Payment Innovation: Mastercard's rollout of authenticated agentic transactions in Singapore and Malaysia signifies a shift towards AI-driven commerce, enhancing user trust in autonomous decision-making through the integration of tokenization and verifiable intent, thereby improving transaction security.
- Regional Partnership Strategy: The collaboration with United Overseas Bank reflects Mastercard's strategy to establish scalability within Southeast Asia's fragmented financial ecosystem, aiming to enhance its market position through regional partnerships that address market fragmentation.
- Governance Layer Enhancement: The verifiable intent developed alongside Google creates a tamper-resistant record of user authorization, bridging the trust gap between consumers, banks, and merchants, which could become a foundational standard for global AI-driven transactions, promoting industry growth.
- Establishment of Innovation Center: Mastercard's plan to set up an AI Center of Excellence in Singapore aims to deepen innovation, cybersecurity, and regulatory alignment, reflecting the recognition that scaling AI in payments requires not only technology but also robust oversight and ecosystem readiness.
See More
Affirm: Stability or Increased Uncertainty on the Horizon?
Company Overview: Affirm Holdings is a key player in the buy-now-pay-later (BNPL) sector, reporting significant growth in gross merchandise volume, revenue, and net income in its recent quarterly results.
Financial Performance: The company achieved a gross merchandise volume of $13.8 billion, a 36% increase year-over-year, with revenue climbing 30% to $1.12 billion and net income rising 61% to $130 million.
Market Position and Risks: Despite strong financials, analysts express caution due to potential credit risks and competition from established players like PayPal and Klarna, as well as rising delinquency rates in the credit market.
Investment Outlook: Affirm is seen as a high-risk, high-reward investment, with analysts generally bullish on its growth potential, but investors are advised to be wary of associated risks before investing.
See More
Financial Stocks Struggle, Consumer Finance Takes Major Hit
- Consumer Finance Decline: Year-to-date, consumer finance stocks have plummeted by 21%, with Robinhood, Affirm, and SoFi down 39%, 40%, and 38% respectively, reflecting investor concerns over economic slowdown and rising credit risks, leading to a valuation correction for these previously high-performing stocks in 2025.
- Payment Processor Advantage: Visa and Mastercard, as the largest payment processors in the U.S., account for 76% of credit card transaction volume and 69% of cards in circulation, and due to their lack of credit risk exposure, they maintain stable cash flows during economic downturns, with expectations of double-digit earnings growth in 2026.
- Market Dominance: S&P Global and Moody's control 80% of the credit rating market, and with its strong positions in market intelligence and indexing, S&P Global has historically performed well under various market conditions, with a projected 5% increase in credit issuance in 2026.
- Analyst Optimism: 93% of analysts rate Mastercard and S&P Global as
See More
Financial Stocks Decline, Visa and Mastercard Stand Out
- Overall Financial Sector Decline: Financial stocks have dropped approximately 10% year-to-date, with consumer finance stocks suffering the most, down 21%, significantly impacting the entire financial sector.
- Visa and Mastercard's Market Position: As the largest payment processors in the U.S., Visa and Mastercard account for 76% of credit card purchase volume and 69% of all cards in circulation, and their lack of credit risk allows them to perform relatively well during economic downturns.
- Analyst Optimism for Visa and Mastercard: With 93% of analysts rating Mastercard as a 'buy' with a price target of $669, indicating a 34% upside, and 92% rating Visa with a target of $408, also suggesting a 34% potential gain, both companies are viewed favorably.
- S&P Global's Resilient Performance: As a dominant player in the credit ratings market, S&P Global, alongside Moody's, controls 80% of the market share, with a projected 5% increase in credit issuance in 2026, and its status as a Dividend King with 53 consecutive years of dividend increases underscores its financial strength.
See More
