UK FCA launches competition probe into Mastercard, PayPal and Visa over digital wallet practices

The UK's Financial Conduct Authority (FCA) has opened a competition investigation into Mastercard, PayPal and Visa under Chapter I of the Competition Act 1998, with Mastercard and Visa also subject to Chapter II. The probe centres on alleged anti‑competitive conduct linked to the funding, usage, routing and incentive structures of PayPal's digital wallet.

The FCA confirmed the investigation after PayPal's financial reporting but has not disclosed specific conduct, market definition, agreements or timeframes. No findings have been made, and the regulator stresses that the inquiry does not constitute a judgment of wrongdoing. Firms in the payments ecosystem are urged to assess whether their wallet funding options, routing rules and fee arrangements could raise competition‑law concerns, as such arrangements may affect market access and choice for consumers and merchants.