UK probes Mastercard, Visa, PayPal over suspected anti-competitive conduct
FCA Investigation into Digital Wallet Competition
LONDON, May 6 (Reuters) - Britain's Financial Conduct Authority said on Wednesday it was investigating Mastercard, PayPal and Visa over suspected anti-competitive conduct linked to the funding and usage of PayPal's digital wallet.
In a brief statement, the FCA said it had reached no conclusions about whether competition law had been broken.
The three companies said they were cooperating with the regulator.
Company Responses to FCA Inquiry
Mastercard's Position
Mastercard confirmed it had received an information notice from the FCA requesting details of its contractual relationship with PayPal.
"Mastercard works to ensure we meet the highest standards of competition law and will be cooperating fully and transparently with the FCA," a spokesperson said.
Visa's Statement
A Visa representative said it had been informed by the FCA of an inquiry into "contractual provisions regarding the PayPal digital wallet" and it was cooperating with the FCA.
PayPal's Response
"As this is a pending investigation, we cannot comment further at this time," a PayPal spokesperson said.
Growth of Digital Wallet Usage in Britain
Trends in Digital Payments
Digital wallet usage has surged in Britain. The FCA and Payment Systems Regulator, which is tasked with ensuring an accessible, reliable and fair payment system, said last year the proportion of card transactions using a digital wallet had jumped to 29% from 8% in 2023.
Calls for Increased Competition
Regulatory Statements and Market Innovation
In a joint statement issued in February 2025, the watchdogs said they had heard calls for improvements to enable competition among digital wallet providers that would allow new players to enter the market to bolster innovation.
(Reporting by Phoebe Seers, Kirstin Ridley and Sam Tabahriti, editing by William James, Louise Heavens and Bernadette Baum)
