The case is based on 2007 EU competition law, and marks the first mass claim made under the UK’s Consumer Rights Act – passed in 2015. The law reimburses consumers for illegal anti-competitive behavior. The claim argues that the card issuer reaped the rewards of interchange fees – charged to retailers – passed on to consumers at higher prices.
“Businesses and consumers simply cannot afford to continue paying sky-high rates when it comes to card payments,” Yapily’s chief commerical officer, Matt Cockayne, tells FinTech Futures. He points to open banking-enabled payment initiation as a solution. The CCO highlights the progress made in adoption this year, with half of the UK’s small and medium-sized enterprises (SMEs) now using open banking in some capacity. “Not only does it reduce costs for everyone involved, businesses who are trying to get back on their feet can access fairer, personalised loan options and take control of their business’ financial health.”