LONDON, July 15 (Reuters) - British regulators said on

Monday they were looking into the soaring use of digital wallets

offered by Big Tech firms, including whether there are any

competition, consumer protection or market integrity concerns.

The Financial Conduct Authority and Payments Systems

Regulator is seeking views on the benefits and risks, and will

assess the impact digital wallets, such as Apple Pay, Google Pay

and PayPal ( PYPL ), have on competition and choice of payment options at

checkout, among other things.

Digital wallets are now likely used by more than half of UK

adults and have become "an increasingly important touchpoint"

between Big Tech companies and UK consumers, they said in a

statement.

"Digital wallets are steadily becoming a go-to payment type

and while this presents exciting opportunities, there might be

risks too," said David Geale, the PSR's managing director.

Nikhil Rathi, the FCA's chief executive, said the growth of

digital wallets represented a "seismic shift" in how people pay

and regulators wanted to maximise the opportunities while

"protecting against any risks this technology may present."

Regulators and lawmakers in Europe and the United States

have been examining the growing role of Big Tech in financial

services.

The U.S. consumer watchdog last year proposed regulating

payments and smartphone wallets, prompting criticism from the

industry.

The British regulators said their review of digital wallets

built on their previous work on contactless mobile payments and

on the role of Big Tech firms in financial services.

After considering all feedback, the regulators provide an

update on Big Tech and digital wallets by the first quarter of

2025.