Xin Lang Cai Jing·2026-01-15 12:11Core Viewpoint - The lawsuit initiated by digital banks Revolut, Visa, and Mastercard against the proposed cap on international transaction fees in the UK has failed, affirming the authority of the Payment Systems Regulator (PSR) to impose price limits on cross-border interchange fees, which have significantly increased since Brexit [2][7]. Group 1: Regulatory Developments - The High Court in London ruled that the PSR has the right to set price caps on cross-border interchange fees charged by Visa and Mastercard to banks, which have seen a more than fivefold increase since Brexit [2][3]. - The PSR proposed a price cap in response to complaints from retailers about high fees charged by Visa and Mastercard, aiming to protect UK businesses from excessive charges [4][9]. - The specific standards and implementation date for the price cap have not yet been determined by the PSR, which is set to be merged into the Financial Conduct Authority (FCA) [3][7]. Group 2: Financial Impact - Between 2021 and 2022, Mastercard and Visa raised the online transaction cross-border interchange fees between the UK and the European Economic Area, with debit card fees increasing from 0.2% to 1.15% and credit card fees from 0.3% to 1.5% [8][9]. - The PSR estimated that the increase in fees has led to an additional annual expenditure of £150 million to £200 million for UK businesses [9]. Group 3: Industry Reactions - The proposed cap has faced opposition from banks and fintech companies in Europe that rely heavily on fee income, arguing that it could lead to losses on every transaction due to operational costs exceeding the allowed fee limits [5][10]. - Fintech companies, unlike traditional banks, do not have large-scale lending capabilities and are more dependent on payment fees, making them particularly vulnerable to the proposed regulations [5][10]. - The emergence of digital wallets like Apple Pay and Google Pay has increased infrastructure costs for these companies, further complicating the financial landscape post-Brexit [10].