The UK Financial Conduct Authority has launched a competition investigation into PayPal, Visa, and Mastercard over suspected anti-competitive conduct tied to the funding and use of PayPal’s digital wallet. The regulator is examining all three companies under Chapter I of the Competition Act 1998, which covers agreements that may restrict or distort competition. Visa and Mastercard are also being reviewed under Chapter II, which addresses potential abuse of a dominant market position. The FCA said it has not reached any conclusions or found any breach of competition law.
The probe centers on contractual terms governing how PayPal’s digital wallet is funded and used. PayPal disclosed in a financial report that it received notices of investigation and requests for information from the FCA in March 2026 relating to provisions in its agreements with Visa and Mastercard. The company said it is cooperating with the investigation.
The inquiry could have implications for the payment infrastructure used by UK-facing FX and CFD brokers, many of which rely on Visa, Mastercard, and PayPal for client account funding alongside bank transfers. While the investigation does not change current deposit options for traders, Finance Magnates noted that it brings regulatory attention to the commercial terms behind widely used payment rails and whether those arrangements affect choice, pricing, or market access.
The UK review comes amid broader scrutiny of digital wallet and card network competition. Visa and Mastercard previously agreed to a revised $38 billion antitrust settlement with U.S. merchants over swipe fees, while the Federal Trade Commission issued formal warnings to major payment firms regarding service denials. The FCA investigation remains at an evidence-gathering stage, and the companies would have an opportunity to respond if the regulator later issues a statement of objections.
