Mastercard has reached a settlement in a groundbreaking lawsuit initiated by consumer advocate Walter Merricks on behalf of approximately 46 million UK adults.

The case, approved as the first mass consumer action in the UK in 2021, underwent nearly nine years of legal proceedings involving the Competition Appeal Tribunal (CAT) and the UK Supreme Court. A Mastercard spokesperson expressed relief at the resolution, stating the company was "pleased to have reached an agreement in principle." Merricks also welcomed the settlement, highlighting that it would provide meaningful compensation to affected class members willing to participate in the damages distribution.

The case arises against the backdrop of persistent concerns about Mastercard's and Visa's dominance, as the two giants accounted for around 95% of UK card payments in 2024. A recent market review by the Payment Systems Regulator (PSR) criticized the lack of competition, revealing that the firms have increased scheme and processing fees by over 30% in real terms in the past five years, with minimal improvements in service quality. While the PSR refrained from imposing penalties, it flagged the market's structural issues, noting that "no effective competition" currently exists to prevent Mastercard and Visa from raising prices unchecked.