The report reveals that over the past five years, scheme and processing fees have surged by more than 30 per cent in real terms, without corresponding improvements in service quality. Mastercard and Visa cards account for 95 per cent of transactions using UK-issued cards, while non-card payment methods are often not effective competitive alternatives for businesses.
Complicated and opaque pricing practices have further exacerbated the situation, leaving UK businesses with little choice but to absorb these increased costs. The PSR is now considering measures to boost transparency and competition in this critical sector.
