UK: Regulators scrutinize digital wallets from big tech companies

British regulators are investigating the increasing use of digital wallets offered by major technology companies and are examining whether digital wallets could pose problems in terms of competition, consumer protection or market integrity now or in the future. This was reported on Monday by the news agency Reuters.

According to the report, the British regulatory authorities Financial Conduct Authority (FCA) and Payments Systems Regulator (PSR) have asked for opinions on the benefits and risks. On this basis, the impact of digital wallets such as Apple Pay, Google Pay or PayPal on competition and the choice of payment options at the checkout will be assessed, among other things.

Digital wallets have become "an increasingly important point of contact" between large tech companies and British consumers, according to a joint statement from the regulatory authorities. The authorities estimate that more than half of adults in the UK now use digital wallets. "Digital wallets are becoming an increasingly popular method of payment, which offers exciting opportunities but can also bring risks", David Geale, chief executive of the PSR, is quoted as saying in the statement. Nikhil Rathi, Managing Director of the FCA, expressed a similar view. Considering the growth of digital wallets, it is the task of the regulatory authorities to maximize the opportunities and at the same time "protect against the risks that this technology can bring".

The UK regulators said their review of digital wallets builds on previous investigations into contactless mobile payments and the role of big tech firms in financial services. They plan to present an update on big tech and digital wallets in the first quarter of 2025.

(akn)