Regulations
By Dan Saada
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What the FCA Is Actually Looking For. The probe centers on PayPal's digital wallet and how it gets funded and used.
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What Happens Next. If the FCA does issue a statement of objections, things get more serious.
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The Financial Conduct Authority just opened a probe into three payment giants. Mastercard, PayPal, and Visa now face questions about how they handle PayPal's digital wallet…
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The FCA is using the Competition Act 1998 to dig into this. Mastercard and Visa are being looked at under both Chapter I and Chapter II of that law.
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The probe centers on PayPal's digital wallet and how it gets funded and used. The FCA wants to know if Mastercard and Visa did anything to restrict competition when it comes to…
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The Competition Act 1998 exists to keep markets fair. It stops companies from rigging things in their favor or squeezing out competitors.
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The FCA is still in the evidence-gathering phase. That means interviews, documents, data—whatever helps them understand what went down.
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If the FCA does issue a statement of objections, things get more serious. The companies can submit written responses.
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The procedures here are different from what the FCA uses for the Financial Services and Markets Act 2000. That's a separate law with separate rules.
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No one from Mastercard, PayPal, or Visa has said anything publicly about this. The FCA hasn't released details beyond confirming the investigation exists.
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The digital payments world has gotten a lot of attention lately. Regulators everywhere are watching how these platforms operate. PayPal's wallet is a big piece of the ecosystem.
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See also: FCA Hits Banned Broker Shaun Lawrence with Fresh Charges Over Unlicensed Mortgage Work
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The investigation could take months, maybe longer. Gathering evidence takes time. So does analyzing it. The FCA has to be thorough.
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The FCA's guidance on the Competition Act 1998 lays out how these cases work. It's all online. The document walks through the steps, the timelines, the rights companies have.
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Digital wallets have changed how people pay for things. PayPal was one of the first big players. Mastercard and Visa dominate card networks.
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