PSR & FCA Call On Pros & Cons Of Digital Wallets In UK

Today, July 15, the Payments Systems Regulator (PSR) and the Financial Conduct Authority (FCA) cracked down on the benefits and risks that ‘digital wallets’ bring to users. Primarily zeroing in on the impact of this rapidly growing tech on consumers and businesses, the regulators sought to gather additional information for a better understanding of the technology’s implications in the UK.

As more than half of the adult population nationwide currently uses applications such as Apple Pay, Google Pay, and PayPal, the regulatory bodies find it vital to gain a comprehensive understanding. So, let’s delve into the complexities of digital wallets, as drawn out by the abovementioned regulators.

PSR & FCA Call for Information On Risks & Benefits Orbiting Digital Wallets

According to an official press release today, the regulators aim to understand the implications of this payment technology. This includes the comprehension of a stockpile of pros & cons these wallets bring for users, any features that mean usual payments don’t work as well as they could for businesses or consumers, and the tech’s role in unlocking the true potential of account-to-account payments.

On the flipside, the PSR & FCA also sought to understand how these wallets impact competition between payment systems. Moreover, can digital wallets pose a threat to consumer protection or market integrity issues, either now or in the future.

It’s worth noting that despite the convenience offered by this rapidly growing tech, users are exposed to potential risks such as data breaches, phishing scams, issues related to loss of device, among many other setbacks.

Concerning all the abovementioned factors, the regulatory entities opened a call for information until 5 pm on September 13.

In the interim, recent reports reveal that the Financial Conduct Authority also cracked down on cryptocurrency in recent laundering chronicles.

Also Read: WisdomTree Secures FCA Approval To List Bitcoin, Ether ETPs On LSE

Regulatory Executives Talk On Digital Wallets

The Managing Director at PSR, David Geale, stated, ‘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.”

Meanwhile, the Chief Executive at FCA, Nikhil Rathi, stated, “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 maximize the opportunities and benefits for consumers and businesses while protecting against any risks this technology may present.”

Collectively, these statements underscore the regulators’ efforts in streamlining the digital finance landscape. As also seen in recent chronicles, these entities are also aiming to refine the Web3 space.

Also Read: FCA Executive Defends Rigorous Crypto Registration Process