United Kingdom examines competition in digital wallets from big tech

British regulators announced on Monday (15) that they will investigate the use of digital wallets offered by tech giants such as Apple Pay, Google Pay This is PayPalTo verify potential concerns related to competition, consumer protection and market integrity.

A Financial Conduct Authority (FCA) And this Payment Systems Regulator (PSR) Solicit feedback on the benefits and risks of these digital wallets. They aim to assess how these tools affect competition and the payment options available to consumers at the point of purchase.

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According to regulators, digital wallets are already used by more than half of adults in the UK and have become an “increasingly important point of contact” between major tech companies and British consumers.

“Digital wallets are becoming the preferred form of payment, and while this presents interesting opportunities, it can also bring risks,” he said. David Zeil, Managing Director of PSR. This overview highlights the need for a careful balance between innovation and security.

Nikhil Rathi, FCA Chief Executive, the growth of digital wallets represents a “seismic shift” in the way people pay. He emphasized that regulators want to maximize the opportunities offered by this technology while guarding against potential risks.

This concern about the role of big tech companies in financial services is not unique to the UK. Regulators and legislators in Europe and the US are also paying attention to the phenomenon. Last year, the US consumer watchdog proposed regulating smartphone payments and wallets, prompting criticism from the industry.

British regulators explained that this review of digital wallets builds on previous work on contactless mobile payments and the influence of big tech companies in financial services. The history of these studies provides a solid foundation for the present analysis.

Additionally, the regulators, after considering all feedback received, announced that they will issue an update on Big Tech and digital wallets by Q1 2025.

*With information from Reuters

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