UK Regulators Issue Call for Information on 'Big Tech' and Digital Wallets

The Payment Systems Regulator and the Financial Conduct Authority have launched a joint call for information on "big tech" and digital wallets. With the increasing use by consumers of digital wallets provided by big tech firms, the regulators are concerned about the potential risks arising from big tech business models, but are aware also of the opportunities for enhanced payment experiences through the use of digital wallets. The regulators are looking to gather focused information and evidence on issues including:

• the range of benefits that digital wallets bring for service users;
• whether there are any features in the supply of digital wallets that mean payments don't work as well as they could for consumers and/or businesses;
• the role of digital wallets in unlocking the potential of account-to-account payments and how they could impact competition between payment systems;
• whether digital wallets could raise any significant competition, consumer protection or market integrity issues, either now or in the future; and
• whether the regulatory framework is effective.

The regulators note that the issues examined may also be relevant to the Competition and Markets Authority, both under its current powers and the new digital markets competition regime when it enters into force. The deadline for comments is September 13, 2024. The regulators intend to publish an update by Q1 2025.

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