Visa And Mastercard Under Scrutiny For Fee Increases In The UK - What's On The Cards?
Portfolio Pulse from Shivani Kumaresan
Visa Inc. (NYSE:V) and Mastercard Inc. (NYSE:MA) are under scrutiny by the UK's Payment Systems Regulator (PSR) for increasing fees on retailers without corresponding service improvements. The PSR's provisional findings indicate a lack of competition in the market, leading to significant fee hikes over the past five years. The PSR has suggested several remedies for public consultation, with a final report expected in the last quarter of the year.
May 21, 2024 | 12:15 pm
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Mastercard Inc. is under scrutiny by the UK's Payment Systems Regulator for increasing fees on retailers without corresponding service improvements. The PSR's provisional findings indicate a lack of competition in the market, leading to significant fee hikes over the past five years.
The scrutiny and potential regulatory actions could negatively impact Mastercard's stock price in the short term due to concerns over increased oversight and potential limitations on fee increases.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Visa Inc. is under scrutiny by the UK's Payment Systems Regulator for increasing fees on retailers without corresponding service improvements. The PSR's provisional findings indicate a lack of competition in the market, leading to significant fee hikes over the past five years.
The scrutiny and potential regulatory actions could negatively impact Visa's stock price in the short term due to concerns over increased oversight and potential limitations on fee increases.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100