The Payments Systems Regulator (PSR) and Financial Conduct Authority (FCA) are looking into the benefits and risks digital wallets bring to people and businesses – including estate and letting agents.
The use of digital wallets has grown rapidly over the last few years, and it’s likely that more than half of UK adults now use one.
With Apple Pay, Google Pay and PayPal being three of the most widely used digital wallets in the UK today, digital wallets have become an increasingly important touchpoint between Big Tech firms and UK consumers.
The regulators want to understand the impact on consumers and businesses that digital wallets’ increasing popularity creates, including whether there are any features that mean payments don’t work as well as they could for consumers and businesses as well as their role in unlocking the potential of account-to-account payments and how they could impact competition between payment systems.
RISKS
David Geale, PSR Managing Director David Geale, the PSR’s Managing Director says: “Digital wallets are steadily becoming a go-to payment type and while this presents exciting opportunities, there might be risks too.
“Collaboration between regulators and working with industry is crucial to ensure we’re on the front foot to support innovation and competition, making sure everyone benefits from access, protection and choice in payments.
“We look forward to hearing views and evidence from a wide range of stakeholders throughout this process.”
SEISMIC SHIFT
Nikhil Rathi (main picture), the FCA’s Chief Executive, adds: “The UK is seeing a seismic shift in how people pay, as digital wallets become a part of everyday life for many people.
“We want to make sure we can maximise the opportunities and benefits for consumers and businesses while protecting against any risks this technology may present.”
The regulators will consider all feedback received and provide an update by Q1 2025.”
