As part of our card scheme and processing fees market review, we are publishing a working paper setting out our proposed approach to analysing the profitability of Mastercard and Visa’s UK businesses.  

Why are we publishing this document?  

Through our market review, we want to understand whether the supply of scheme and processing services is working well, with regards to our statutory objectives of competition, innovation and service-user interests.  

As part of that work, we are looking at the profitability of Mastercard and Visa’s UK card businesses to understand whether their profit levels are what would be expected in a competitive market.   

What does this document contain? 

Profitability can be measured in a range of ways, and this working paper sets out the PSR’s proposed approach on how it plans to do this for UK scheme and processing services. It also sets out some initial analysis of Mastercard and Visa’s recent European operating profits, which include their UK activities.   

Who should read this document? 

This document is relevant to various individuals or organisations with an interest in making, receiving or processing card payments - in particular, issuers, acquirers, schemes, merchants and cardholders.  

What happens next? 

We welcome feedback on our approach to profitability analysis working paper. Specific areas we are interested in hearing views on are outlined in the paper.  

All views and evidence gathered will help to inform the interim report of our scheme and processing fees market review. Publication of the interim report is currently planned for Q4 2023. The final terms of reference for our market review includes an ambitious timetable setting out in more detail the stages of our work.   

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