The Payment Systems Regulator (PSR) in the UK has released FS25/1, a feedback statement exploring the role of Big Tech in digital payments. As digital wallets like Apple Pay, Google Pay, and Samsung Pay become central to everyday transactions, regulators are assessing their impact on competition, consumer protection, and financial stability.
🔍 Key Insights from the Report
đź“Ś Market Power & Competition: The dominance of Big Tech in digital payments raises concerns about market concentration. Regulators are examining whether these firms restrict competition by leveraging their ecosystem advantages (e.g., exclusive access to NFC on Apple devices).
đź“Ś Interoperability & Access: The industry is calling for greater transparency in how digital wallets interact with payment systems. Should regulators intervene to mandate fair access to payment infrastructure?
đź“Ś Consumer Protection & Security: While digital wallets offer convenience, the lack of standardised protections across providers could expose users to fraud risks and payment failures.
đź“Ś Innovation vs. Regulation: How can policymakers encourage fintech innovation without stifling competition or creating systemic risks? The PSR is considering whether additional safeguards or interventions are necessary.
đź“– Read the full report here
đź’ˇ Why This Matters
As payments continue to shift towards mobile-first solutions, the regulatory landscape is evolving. The firms active in payments and fintech should stay ahead of these discussions. As digital wallets become increasingly prevalent, businesses need to understand the evolving regulatory landscape. Dalir Law Firm is closely following these developments and can advise you on navigating the legal and compliance challenges in this dynamic area. Contact us at lawfirm@dalir.co.uk