The United Kingdom’s Financial Conduct Authority (FCA) announced on May 6, 2026 that it has launched an investigation into three major payment companies — PayPal, Visa, and Mastercard — for suspected anti-competitive conduct under the Competition Act of 1998. The probe specifically focuses on how PayPal’s digital wallet is funded and used by consumers.
The decision to investigate follows PayPal’s own disclosure in a 10Q filing at the end of March, where it revealed the FCA had initiated an inquiry and said it is cooperating with the regulator. The FCA stated that it has not yet reached any conclusion on whether competition laws have been broken. The Competition Act prohibits agreements, practices, and conduct that may damage competition in the UK, and the FCA has a statutory duty to enable competition within its remit. Cases may also be brought by the UK Competition and Markets Authority.
The regulator is currently gathering evidence and may proceed to issue a statement of objections setting out a provisional view that there has been an infringement. If a statement of objections is issued, the targeted parties would have the opportunity to respond with written and oral presentations before any final decision is made. Not all investigations result in such a statement.
Market Reaction: All three companies saw their share prices drop on the news. PayPal fell the most, declining about 7.74%, while Mastercard dropped roughly 1.52% and Visa fell around 1.47%. The FCA has not provided a timeline for completing the investigation.
