FCA probes PayPal, Mastercard and Visa

The UK’s Financial Conduct Authority has opened a formal investigation into Mastercard (MA), Visa (V) and PayPal over suspected anti-competitive practices linked to PayPal’s digital wallet. The action was publicly highlighted on May 6, 2026, when PayPal reported that the FCA is examining whether commercial arrangements between the three companies restrict competition in the payments market.

According to verified information, the inquiry is centred on whether the relationships between Mastercard (MA) and Visa (V) and PayPal’s digital wallet could be stifling rival services. The FCA is assessing if these contractual structures limit choice or access for other market participants within the UK payments ecosystem.

The FCA’s investigation specifically targets PayPal’s digital wallet and its interactions with the two major card networks. Regulators are analysing how these arrangements function in practice and whether they confer advantages or impose constraints that might undermine fair competition among payment providers.

The probe forms part of a broader regulatory effort to scrutinise large players in digital payments as the sector evolves. By focusing on PayPal’s wallet and its ties with Mastercard and Visa, the FCA is looking at a key junction between established card schemes and newer, app-based payment services.

PayPal has disclosed that it received formal notices of investigation and requests for information from the FCA in March 2026. These notices concern its contractual agreements with Visa and Mastercard, and require the company to supply documentation and data to support the regulator’s review.

The FCA has emphasised that the investigation is in its evidence-gathering phase. The authority has not reached any conclusions about whether UK competition law has been breached, and no findings of wrongdoing have been announced against Mastercard, Visa or PayPal at this stage.

The scrutiny of three major global payments firms underscores regulatory attention on how dominant networks and large digital wallets interact. Outcomes from the FCA’s work could influence how similar partnerships and contractual arrangements are structured in the UK market in future.

While the investigation continues, existing services from Mastercard, Visa and PayPal remain under review rather than subject to any announced enforcement action. The case highlights the increasing oversight faced by significant players in the digital payments ecosystem as regulators seek to ensure open and competitive markets.