UK regulators are seeking feedback on the potential benefits and risks associated with digital wallets from major tech companies like Apple and Google, aiming to assess their impact on individuals and businesses.
The Financial Conduct Authority (FCA) and the Payments Systems Regulator (PSR) report that the use of digital wallets has surged in recent years, with estimates suggesting that over half of UK adults are now users. In light of this growth, the regulators have initiated a call for information to better understand how services like Apple Pay, Google Pay, and PayPal affect users.
They are particularly interested in feedback regarding any features that may hinder payment effectiveness for consumers and businesses. Additionally, the regulators want to explore the role of digital wallets in enhancing account-to-account payments, their effect on competition among payment systems, and whether they may present significant issues related to competition, consumer protection, or market integrity.
Nikhil Rathi, CEO of the FCA, stated, “The UK is experiencing a significant transformation in payment methods, with digital wallets becoming integral to the daily lives of many. We aim to maximize the opportunities and advantages for consumers and businesses while safeguarding against any potential risks associated with this technology.”