Brexit

Mastercard's strong performance is dampened by threats from trade disputes and Brexit, both of which could cause the company pain in the future.

Brexit's implications for the U.K.'s technology industry are deepening political fractures, with no clear answer as to how startups fintechs and challenger banks can operate in the U.K. after it leaves the European Union.

The U.K.’s Rural Payments Agency has long been renowned for its inefficiencies in processing timely and accurate financial support payments to farmers across the country. But now industry figures expect Brexit will lead to an improvement in performance due to a loosening of the EU-driven bureaucratic regulations.

TransferWise is the first nonbank to become a member of the U.K.’s Faster Payments service (FPS), but with Brexit on the horizon, it has to make sure it is similarly invested in other markets.

So far, U.K. fintechs' options range from relocating to other countries to finding ways to offset negative effects by attempting to “Brexit-proof” their businesses. The latter option can still be a substantial undertaking.

London is battling other cities, which are trying to use the political uncertainty of the U.K.'s exit from the European Union to lure payment startups and other financial technology companies.

The central bank said the legal change would allow it to fully exercise the powers laid out in a clearing proposal from the European Commission.