Saturday, May 15, 2021
International Finance
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European Commission probes Visa over ‘anti-competitive behaviour’

EU VIsa_IF_Image
The investigation follows the Wirecard scandals to prevent financial mishaps in the future

The European Commission is investigating Visa over its rules for fintech companies using its network, media reports said. The investigation was started after the company was accused of ‘anti-competitive behaviour’. 

Visa is a global payments company and enables fintechs to provide digital wallets by granting them licences. However, the fintechs are eligible for Visa’s licences only if they meet certain standards for anti-money laundering and fraud. A Visa spokesperson told the media,  “We are working with a wide variety of fintechs and start-ups to provide them open access to our global network. We welcome new solutions and new ways for people to make electronic payments and for merchants to accept them, subject always to delivering the security and convenience that our customers expect from Visa.”

The investigation into Visa is taking place after the Wirecard scandal. The investigation has stemmed from allegations that fintech companies are not complying with EU rules to offer swift payments, which in turn is making it difficult for Visa to monitor against financial crimes like money laundering and fraud. It is reported that Australian emoney firm iSignthis has accused Visa of trying to dwarf competitiveness by restricting their data access. Anti-competitive activities have become a complex issue in the financial industry. 

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