FCA Investigates PayPal, Visa, Mastercard on Competition

Britain's Financial Conduct Authority announced on Wednesday that it has opened an investigation into PayPal, Visa, and Mastercard over suspected anticompetitive practices linked to the funding and use of PayPal's digital wallet.

The probe examines whether the companies breached Chapter I of the Competition Act 1998, which prohibits agreements that prevent, restrict, or distort competition in the UK. It also investigates Visa and Mastercard under Chapter II of the act for potential abuse of a dominant market position. The FCA emphasized that it has reached no conclusions and made no findings of any competition law violations.

PayPal's digital wallet enables users to make online and in-store payments using a linked bank card or account, without directly sharing financial details with merchants. The regulator's focus centers on certain contractual provisions between PayPal and the card networks that may limit competition in payment systems.

All three companies confirmed they are cooperating with the investigation. In its latest financial report, PayPal stated: "In March 2026, we received notices of investigations and related requests for information from the U.K. Financial Conduct...