MasterCard To Pay $650 Million Fine For Unlawful Fee Increase
On January 22, the EU authorities fined the MasterCard payment system $650 million for unlawful raising of the card payment fees. According to financial experts, this news will have a positive impact on cryptocurrency, since it is impossible to manipulate the transaction costs in the blockchain industry.
The investigation showed that MasterCard made commercial entities use the national banks services. As a result, there was an artificial increase in payment costs, which caused financial damage to the EU companies and clients. According to Margrethe Vestager, the European Commissioner for Competition, the MasterCard employees prevented their clients from choosing the most favorable payment terms.
The management of the payment system acknowledged the violation and agreed to pay a fine. The MasterCard representatives said they would no longer constrain the clients’ choice of a banking service provider. However, the problem of monopoly in the financial market is now particularly acute. According to CNBC, large companies enter into partnership agreements to expand the list of their services and to enhance the services reliability. Nevertheless, it creates a scope for introducing unreasonably high fees.
Retailers and clients will increasingly take advantage of cryptocurrency as a means of payment to reduce the remittance costs. According to experts, many companies will switch to cryptocurrency payment services, such as Bitpay and Wirex, which automatically convert virtual currency into fiat money. This will avoid the risks associated with the high volatility of the digital assets.