News

Digital Wallets in the UK Are Currently Reviewed as Risky by Regulators

3 hours ago - Around 2 mins mins to read

Key Points:

  • The UK Payment Systems Regulator (PSR) and the Financial Conduct Authority (FCA) are seeking information on the growing use of digital wallets in the UK.
  • The regulators aim to understand the benefits and potential drawbacks of digital wallets.
  • Responses from stakeholders will be analyzed, and an update will be provided by the first quarter of 2025.
The UK Payment Systems Regulator (PSR) and the Financial Conduct Authority (FCA) have jointly called for information on digital wallets in the UK.
Digital Wallets in the UK Are Currently Reviewed as Risky by Regulators

Read more: Revolut Joins PayPal in Suspending UK Customers as Crypto Companies Prepare to Implement FCA Rules from January

Regulators Seek Insights on Digital Wallets in the UK

The usage of digital wallets in the UK has surged in recent years, with more than half of UK adults now utilizing services like Apple Pay, Google Pay, and PayPal. These digital wallets have become crucial touchpoints between big tech firms and UK consumers.

Given the rapid growth of digital wallets, the regulators aim to understand their impact on consumers and businesses. They seek insights on the range of benefits digital wallets offer to service users and whether any features hinder optimal performance for consumers and businesses.

Additionally, they are interested in the potential of digital wallets to unlock account-to-account payments and their effect on competition between payment systems. The regulators are also concerned about any significant competition, consumer protection, or market integrity issues that digital wallets might pose now or in the future.

Regulatory Analysis and Updates Expected by Q1 2025

David Geale, Managing Director of the PSR, highlighted the dual nature of digital wallets as both an exciting opportunity and a potential risk. He emphasized the importance of collaboration between regulators and industry to support innovation and competition while ensuring access, protection, and choice in payments.

Nikhil Rathi, Chief Executive of the FCA, noted the significant shift in payment methods within the UK, with digital wallets becoming a daily tool for many. He stressed the need to maximize the benefits and opportunities for consumers and businesses while safeguarding against potential risks. The regulators will analyze all responses received and provide an update by the first quarter of 2025.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Apple Pay

digital wallets

FCA

google pay

PayPal

PSR

UK

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Digital Wallets in the UK Are Currently Reviewed as Risky by Regulators

Key Points:

  • The UK Payment Systems Regulator (PSR) and the Financial Conduct Authority (FCA) are seeking information on the growing use of digital wallets in the UK.
  • The regulators aim to understand the benefits and potential drawbacks of digital wallets.
  • Responses from stakeholders will be analyzed, and an update will be provided by the first quarter of 2025.
The UK Payment Systems Regulator (PSR) and the Financial Conduct Authority (FCA) have jointly called for information on digital wallets in the UK.
Digital Wallets in the UK Are Currently Reviewed as Risky by Regulators

Read more: Revolut Joins PayPal in Suspending UK Customers as Crypto Companies Prepare to Implement FCA Rules from January

Regulators Seek Insights on Digital Wallets in the UK

The usage of digital wallets in the UK has surged in recent years, with more than half of UK adults now utilizing services like Apple Pay, Google Pay, and PayPal. These digital wallets have become crucial touchpoints between big tech firms and UK consumers.

Given the rapid growth of digital wallets, the regulators aim to understand their impact on consumers and businesses. They seek insights on the range of benefits digital wallets offer to service users and whether any features hinder optimal performance for consumers and businesses.

Additionally, they are interested in the potential of digital wallets to unlock account-to-account payments and their effect on competition between payment systems. The regulators are also concerned about any significant competition, consumer protection, or market integrity issues that digital wallets might pose now or in the future.

Regulatory Analysis and Updates Expected by Q1 2025

David Geale, Managing Director of the PSR, highlighted the dual nature of digital wallets as both an exciting opportunity and a potential risk. He emphasized the importance of collaboration between regulators and industry to support innovation and competition while ensuring access, protection, and choice in payments.

Nikhil Rathi, Chief Executive of the FCA, noted the significant shift in payment methods within the UK, with digital wallets becoming a daily tool for many. He stressed the need to maximize the benefits and opportunities for consumers and businesses while safeguarding against potential risks. The regulators will analyze all responses received and provide an update by the first quarter of 2025.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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