FCA opens Competition Act probes into Mastercard, Visa and PayPal
FCA confirmed Chapter I and Chapter II Competition Act 1998 investigations into Mastercard, Visa and PayPal regarding PayPal wallet funding and usage.
The FCA is investigating suspected anti-competitive conduct linked to the funding and usage of PayPal's digital wallet, covering both agreements (Chapter I) and abuse of dominance (Chapter II) by the card networks. No findings have been made. The probe signals FCA's expanding use of competition powers in payments.
Major payments market structure investigation with implications for card scheme fees, wallet economics and merchant acquiring.
Action Required
Assess card scheme and wallet-related commercial arrangements for competition law exposure and review internal controls.
FCA's use of concurrent competition powers against systemic payments players is a notable supervisory escalation.
Review competition risk controls for payments arrangements; preserve records; monitor for read-across to other wallet and scheme arrangements.
“FCA confirmed it is investigating Mastercard, PayPal and Visa under Chapter I, and Mastercard and Visa under Chapter II, of the Competition Act 1998, for suspected anti-competitive conduct linked to funding and usage of PayPal's digital wallet.”
Published: 2026-05-26