UK investigates Mastercard, Visa, PayPal for alleged anti-competitive conduct

UK's Financial Conduct Authority FCA, is reviewing major payment gateways as part of a broader probe over digital law violations.

The financial authority was investigating Mastercard, PayPal, and Visa over suspected anti-competitive conduct linked to the funding and usage of PayPal's digital wallet.

Giving a brief statement, the FCA said it had reached no conclusions about whether competition law had been broken, and the companies said they were cooperating with the regulator.

Moreover, Mastercard confirmed it had received an information notice from the FCA requesting details of its contractual relationship with PayPal.

A spokesperson said. "Mastercard works to ensure we meet the highest standards of competition law and will be cooperating fully and transparently with the FCA."

A Visa representative also mentioned 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.

"As this is a pending investigation, we cannot comment further at this time," a PayPal spokesperson said.

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.

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.