LONDON – British regulators said on Monday they were looking into the soaring use of digital wallets offered by Big Tech firms, including whether there are any competition, consumer protection, or market integrity concerns.
The Financial Conduct Authority and Payments Systems Regulator is seeking views on the benefits and risks and will assess the impact digital wallets, such as Apple Pay, Google Pay, and PayPal, have on competition and choice of payment options at checkout, among other things.
Digital wallets are now likely used by more than half of UK adults and have become “an increasingly important touchpoint” between Big Tech companies and UK consumers, they said in a statement.
“Digital wallets are steadily becoming a go-to payment type and while this presents exciting opportunities, there might be risks too,” said David Geale, the PSR’s managing director.
Nikhil Rathi, the FCA’s chief executive, said the growth of digital wallets represented a “seismic shift” in how people pay and regulators wanted to maximize the opportunities while “protecting against any risks this technology may present.”
Regulators and lawmakers in Europe and the United States have been examining the growing role of Big Tech in financial services.
The U.S. consumer watchdog last year proposed regulating payments and smartphone wallets, prompting criticism from the industry.
The British regulators said their review of digital wallets built on their previous work on contactless mobile payments and the role of Big Tech firms in financial services.
After considering all feedback, the regulators provide an update on Big Tech and digital wallets by the first quarter of 2025.
(Source: Reuters)
Zabih Ullah is a seasoned finance writer with more than ten years of experience. He is highly skilled at analyzing market trends, decoding economic data, and providing insightful commentary on various financial topics. Driven by his curiosity, Zabih stays updated with the latest developments in the finance industry, ensuring that his readers receive timely and relevant news and analysis.