Source : financemagnates, Monday, 15/7/2024
The Payments Systems Regulatory Authority (PSR) and the Financial Conduct Authority (FCA) are seeking opinions on the benefits and risks that digital wallets bring to people and businesses. As digital wallets gain popularity in United Kingdom, these regulators aim to understand their impact on consumer behavior and business operations..
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Digital wallets transform payments in United Kingdom
The use of digital wallets has increased rapidly over the past few years. More than half of adults in United Kingdom are likely to now use one. Apple Pay, Google Pay, and PayPal are three of the most used digital wallets in the United Kingdom today. These digital wallets have become an important link between big tech companies and consumers in United Kingdom.
David Gill, Managing Director of PSR, said: “Digital wallets are increasingly becoming one of the preferred payment types, and while this presents exciting opportunities, there could also be risks..”
Collaborating between regulators and working with industry is critical to ensuring we are at the forefront of supporting innovation and competition, and making sure everyone benefits from access, protection and choice in payments. We look forward to hearing opinions and evidence from a wide range of stakeholders throughout this process..
The future of digital wallet regulation
Regulators are investigating several areas. First, they want to identify the benefits that digital wallets bring to users. Second, they aim to uncover any features that may cause payments to not work well for consumers or businesses..
Another focus is the role of digital wallets in enabling account-to-account payments and their impact on competition between payment systems. Finally, regulators are concerned about potential competition, consumer protection, or market safety issues that digital wallets may raise, now or in the future. Organizers will analyze all responses received and provide an update by the first quarter of 2025.
Nikhil Rathi, CEO of the Financial Supervisory Authority, said: “United Kingdom is witnessing a seismic shift in how people pay, with digital wallets becoming part of the daily lives of many people. We want to make sure we can maximize opportunities and benefits for consumers and businesses while protecting against any risks this technology may pose.
