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UK Watchdog Opens Antitrust Investigation Into PayPal, Visa and Mastercard

By  |  May 6, 2026

The UK’s financial watchdog has launched an antitrust investigation into PayPal, Visa and Mastercard over concerns related to the operation and funding structure of PayPal’s digital wallet, according to the Financial Times.

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    The Financial Conduct Authority announced on Wednesday that it had opened a formal investigation into the three payments groups over suspected breaches of UK competition law. Per the Financial Times, the inquiry focuses on whether commercial arrangements linked to PayPal’s wallet services may have restricted competition in the payments market.

    The regulator said the investigation falls under the UK’s Competition Act 1998, which prohibits agreements or coordinated practices that could distort competition or affect trade. According to the Financial Times, the FCA is also examining whether Visa and Mastercard may have abused dominant positions in the market, in addition to the concerns over contractual arrangements involving PayPal.

    The FCA emphasized that the investigation remains at an early stage and that it “has reached no conclusions nor made any findings with regard to competition law having been broken.”

    Related: PayPal Wins Dismissal of Antitrust Lawsuit Over Merchant Rules

    Antitrust investigations by the FCA are relatively uncommon. According to the Financial Times, the regulator first exercised its competition enforcement powers in 2019 when it issued a fine involving rule breaches by UK asset managers.

    Visa confirmed that the regulator had opened an investigation into “contractual provisions regarding the PayPal digital wallet,” according to the Financial Times. Mastercard also acknowledged the inquiry, saying the FCA had requested information concerning its “contractual relationship with PayPal,” and added that it “works to ensure we meet the highest standards of competition law.”

    All three companies — PayPal, Visa and Mastercard — said they are co-operating with the FCA as the investigation moves forward.

    Source: The Financial Times