Select Committee on Treasury Minutes of Evidence

Letter from MasterCard/Europay UK Limited

Banking Inquiry

  I am writing to you in your capacity as Chairman of the Treasury Select Committee to outline the views of MasterCard/Europay UK Limited (MEPUK) on the Government's proposal to legislate to open up the payment services industry to competition and the proposed establishment of a sectoral regulator, PayCom.

  MEPUK is the representative body of the licensees of the MasterCard International and Europay International brands in the UK.

  No one would argue against the Review's belief that competitive outcomes in the payment services industry are desirable.

  Indeed, the market for payment cards is already internationally recognised as being characterised by vigorous competition. Our concern is that this position may be jeopardised by the imposition of an additional layer of regulation at UK level and that the Government's proposals as they currently stand are potentially unworkable for the regulation of payment card schemes, which are international in nature.

  This international nature of the schemes is reflected in the fact that the payment cards industry is already subject to competition law at UK, European Union and international level.

  Crucially the public interest case for additional regulation in this area has not been demonstrated.

  For your interest, I attach a document summarising MEPUK's views which has been distributed to other interested parties in and around Westminster. [Not printed.]

  I understand that the Committee's Banking Inquiry is set to resume in earnest in the near future and would welcome the opportunity to meet you to discuss these issues further.

3 November 2000

previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2001
Prepared 13 March 2001