Overview
- The FCA, which announced the probe Wednesday, is examining suspected anti-competitive behavior by Mastercard, Visa and PayPal.
- Regulators are focusing on how consumers fund and use PayPal’s digital wallet, which stores cards such as Visa and Mastercard for online and contactless payments.
- The case falls under the Competition Act 1998, with Chapter I covering all three firms and Chapter II assessing whether Mastercard or Visa hold a dominant position.
- Shares fell after the news, with PayPal down about 7.7 percent, Mastercard off roughly 1.5 percent and Visa lower by about 1.5 percent.
- All three companies said they will cooperate with the FCA inquiry, which could lead to fines or changes to business practices if breaches are found.