UK Antitrust Probe on Payment Giants: What It Means for Expats
The FCA is investigating PayPal, Mastercard and Visa for potential antitrust breaches. Here's how regulatory action could reshape payment costs for expats abroad.
The UK Financial Conduct Authority has launched a rare antitrust investigation into PayPal, Mastercard and Visa—three payment networks that handle the majority of digital transactions for expats moving money internationally. If regulators find breaches, the outcome could directly affect how much you pay in fees when transferring salary home or paying bills abroad.
Why This Matters for Your Relocation Budget
Expats and remote workers rely heavily on these payment networks. Whether you're receiving salary from a US employer into a UK account, paying rent in euros while living in Berlin, or sending money back home, Visa, Mastercard and PayPal are usually in the chain—and each takes a cut. The FCA's move signals that regulators believe these firms may be operating anti-competitively, which could mean inflated fees for cross-border transactions.
Currently, international payment fees can range from 2–5% depending on the network and provider. If the investigation leads to remedies—such as forced fee reductions or open-access requirements—expats could save hundreds annually on routine transfers. Conversely, if these networks face fines or operational restrictions, payment service providers might pass costs onto users temporarily.
Timing and Scope of the Probe
The FCA's use of competition law powers is rare, underscoring how seriously UK regulators view the allegation. The investigation will take months; don't expect immediate fee changes. However, this signals a broader shift: regulators across Europe and North America are scrutinizing payment oligopolies. If the UK finds breaches, other jurisdictions may follow suit.
Planning Your Relocation Strategy
For now, the practical advice remains unchanged: use specialist money-transfer platforms like Wise or OFX, which often bypass traditional payment networks for better rates. When assessing work permit processing timelines and salary negotiations, factor in current payment fees—they're a real cost of living abroad. If you're planning a move to a country with weak banking infrastructure, understand how these payment networks operate locally; disruption to their services could briefly affect access.
Keep an eye on the investigation's outcome. A regulatory win here could meaningfully reduce your cost of living as an expat by cutting transaction fees on an activity—moving money internationally—that's often unavoidable.
Run your own numbers
Every situation is different. Calculate your exact numbers in 30 seconds.
