LONDON, Feb 19 (Reuters) - Mastercard's ( MA ) agreement

to settle a landmark lawsuit brought on behalf of British

consumers drew criticism on Wednesday, in a dispute that could

deter funders from involvement in Britain's burgeoning class

action sector.

The global payments processor in December announced an

agreement to settle long-running litigation over card fees for

200 million pounds, far below the 10 billion-pound ($12.6

billion) valuation previously put on the lawsuit.

This means that, in the unlikely event that every member of

the 44 million-strong claimant class sought payment, they would

receive roughly 2.27 pounds each.

The deal is being opposed by funder Innsworth Capital that

stands to receive half of the settlement sum, with the other 100

million pounds going to consumers.

The Competition Appeal Tribunal in London must now rule on

the first contested settlement in the short history of Britain's

class action-style regime.

Uncertainty was already hanging over the sector after a 2023

Supreme Court ruling rendered many funding agreements void.

In another test for funders, the Court of Appeal is due to

consider the lawfulness of agreements to fund cases against

Apple and Sony later this year.

Innsworth says it spent more than 45 million pounds funding

the litigation against Mastercard ( MA ) and that the deal, under which

it will receive its costs plus 55 million pounds, is "clearly

unfair".

But consumer champion Walter Merricks, who led the case,

and Mastercard ( MA ) say economic analysts value the claim at below

200 million pounds, after adverse rulings knocked out the vast

majority of the lawsuit.