The Payment Systems Regulator (PSR) and the Financial Conduct Authority (FCA) are launching a joint review to assess the impact of digital wallets on the UK financial landscape.
With digital wallet usage exceeding 50% among UK adults, and platforms like Apple Pay, Google Pay, and PayPal gaining prominence, regulators seek a deeper understanding of this trend’s implications.
Key areas of focus include:
- Benefits for Consumers and Businesses: The review will evaluate the advantages digital wallets offer to users and businesses alike.
- Payment Functionality: Regulators aim to identify any features hindering smooth payment experiences for consumers and businesses.
- Account-to-Account Payments: The review will explore how digital wallets can facilitate account-to-account payments and their potential impact on payment system competition.
- Competition, Consumer Protection, and Market Integrity: Potential risks associated with digital wallets will be assessed, including competition concerns, consumer protection issues, and threats to market stability.
Collaboration and Transparency:
Both PSR and FCA emphasize the importance of collaboration with industry stakeholders and the public. They encourage a wide range of voices to contribute to the review process.
The regulators aim to analyze all received feedback and provide an update by the first quarter of 2025. This review signifies a proactive approach by UK regulators to ensure responsible innovation and consumer protection in the evolving digital payments landscape.
