The UK Financial Conduct Authority (FCA) has launched a competition-law investigation into PayPal, Mastercard and Visa. The regulator is examining whether the firms engaged in anti-competitive conduct connected to the funding and use of PayPal’s digital wallet. In a statement released on Wednesday, the FCA said it has not reached conclusions about any potential wrongdoing and that the review is intended to determine whether the companies’ arrangements may breach relevant UK competition rules. The FCA said it had used its competition powers in a relatively rare case among financial services firms. The investigation focuses specifically on how funding related to the PayPal wallet is set up and how the wallet is used, including any potential effects on competition in the payments market. PayPal, Mastercard and Visa are therefore subject to scrutiny under the UK’s competition framework as the regulator gathers and assesses evidence before deciding on any next steps. The FCA’s announcement comes as UK regulators continue to examine conduct in digital payments and wallet-based services.