UK Court Deals Blow to Fintech Giants: Revolut, Visa, and Mastercard Challenge Rejected by Regulator
London's financial watchdog just scored a major victory—and the payments industry is feeling the heat.
The Gavel Falls
A UK court sided decisively with the Financial Conduct Authority, dismissing a high-profile legal challenge from Revolut, Visa, and Mastercard. The ruling reinforces regulatory muscle over how payment networks and digital banks operate, setting a precedent that could ripple across Europe's fintech landscape.
What It Means for the Street
For Revolut, the decision slams the door on a key strategic appeal, potentially forcing compliance with stricter capital or operational rules. Visa and Mastercard, long accustomed to shaping their own playing field, now face a regulator with proven legal backing. It's a reminder that in finance, the house—or in this case, the courts—always wins.
The Bigger Picture
This isn't just about one ruling. It signals a hardening regulatory stance toward fast-moving fintech firms and established card networks alike. Watch for tightened scrutiny on interchange fees, data handling, and market dominance claims. When regulators and courts align, the industry's room to maneuver shrinks—fast.
So, while suits in Canary Wharf recalibrate their legal strategies, the rest of us get a front-row seat to the oldest show in finance: innovation sprinting ahead, and regulation finally catching up. Some things never change—especially the government's cut.
Visa and Mastercard raised their fees after Brexit
This fight started in 2023 when the PSR claimed it had noticed the fees had jumped five times higher since the UK left the EU.
The regulator then said this proved it was time to step in and limit what banks could charge when people used a card to shop online across countries.
The PSR pointed to “card not present” payments, where a buyer in one country pays a seller in another, usually online, as where the fees have particularly surged.
Between 2021 and 2022, Visa and Mastercard’s debit card fees went from 0.2% to 1.15%, and credit card fees surged from 0.3% to 1.5%.
Even though Visa and Mastercard don’t actually keep the interchange fees, they still have something to lose. The court said banks are more likely to use their services when the fees are high, because that’s how banks make more money. Lower the fees, and banks might look elsewhere.
The PSR had warned in a briefing seen by the Financial Times that these changes are costing UK businesses between £150 million and £200 million more every year. That’s what pushed them to act. They said the cap was needed “to protect UK businesses from overpaying”.
Fintechs and banks say the cap puts them at a loss
Not everyone agreed. A lot of European fintechs and banks went straight to the Treasury to complain. One trade body said the cap would make them “lose money on each transaction” because the cost to process a payment would be more than the fee they’re allowed to charge.
Fintechs like Revolut said the same thing. Unlike big banks, they don’t make money from loans. Their business depends on payment fees. Capping those fees hits their Core revenue.
Some also said this new rule would make things worse for the economy. They claimed it went against the UK government’s plans to grow the industry. They said it was anti-competitive.
Things have already gotten more expensive since Brexit.
Banks now have extra work to process payments between the UK and Europe. Then there’s the rise of digital wallets like Apple Pay and Google Pay, which have their own costs and need new tech to support them.
While the price cap still doesn’t have a set date or limit, this ruling means the PSR can MOVE forward. But the regulator itself won’t be around much longer. The government is scrapping it and merging it into the Financial Conduct Authority.
And all this happened right after Donald TRUMP pushed for a 10% cap on credit card interest rates. Banks weren’t happy. Now they’ve got this on their plate too.
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