LONDON, Feb 21 (Reuters) - Mastercard's ( MA ) agreement

to settle a landmark lawsuit brought on behalf of British

consumers was approved by a London tribunal on Friday, despite

opposition from the firm that funded the litigation.

The global payments processor said the Competition Appeal

Tribunal had approved an agreement it announced in December to

settle the long-running litigation over card fees for 200

million pounds ($253 million).

A Mastercard ( MA ) spokesperson welcomed the decision, saying in a

statement: "We will continue to focus on providing consumers and

businesses with what they expect from Mastercard ( MA ) - a great

payments experience, strong value and peace of mind."

Innsworth Capital, which funded the litigation and argued

the settlement should not be approved, did not immediately

respond to a request for comment.

The 200 million-pound deal was far below the 10

billion-pound valuation previously put on the lawsuit and the

dispute over its approval was seen as a key test for Britain's

burgeoning class action sector.

Innsworth argued the agreement was unfair and previously

said the deal "raises significant policy questions for the

regime in the UK as a whole".