Discounts for digital platform payments with branded cards: legal risks, market implications, and the positions of the parties

Traditional financial institutions have initiated a discussion regarding the practice of offering discounts to users when paying for purchases using branded cards and e-wallets on digital platforms. They believe such mechanisms could create an advantage for ecosystem-based financial institutions and limit competition. Representatives of online platforms and a number of experts, on the contrary, consider such loyalty programs legitimate, economically justified, and beneficial for consumers.

The dispute touches on several areas simultaneously: competition, consumer rights, and the regulation of digital ecosystems . If the initiative to ban discounts gains momentum, both users and market participants will feel the consequences.

Regulatory Initiative: Level Playing Field or Limiting Platform Development

Several proposals being discussed at the legislative level propose banning major online platforms from offering discounts for payments made with branded cards or wallets.
The authors’ arguments boil down to the following:

• the cost of the goods should not depend on the payment instrument;
• special conditions within ecosystems may provide an unjustified advantage;
• The principle of a single price must be enshrined in law.

Some regulators supported the idea, emphasizing that mechanisms that influence the price of goods through the payment method potentially create a risk of abuse.

At the same time, other government agencies take a more cautious stance, pointing out that any restriction must take into account the impact on the final price and availability of goods for consumers.

Arguments of financial institutions and digital platforms

Position of the banking sector

Financial institutions believe that:

• discounts within ecosystems provide immediate benefits and effectively create an “internal market”;
• third-party banks are limited in their ability to compete in the same ways;
• A significant portion of buyers choose branded cards precisely because of the price reduction “here and now.”

According to banking market participants, such mechanisms could transform the competitive landscape and lead to a redistribution of traffic in favor of ecosystem cards.

The position of marketplaces and digital ecosystems

Online platforms, on the contrary, note that:

• Loyalty programs are a commonly accepted tool in both offline retail and the banking sector;
• discounts are formed due to savings on commission costs for internal payments;
• The platforms are ready to cooperate with any banks on equal terms;
• Regulation must take into account consumer interests and actual market practices.

Companies emphasize that the integration of financial services is a natural stage in the development of digital ecosystems, comparable to bank salary projects or programs for partner cardholders.

Legal assessment: loyalty or hidden price differentiation

The question of the admissibility of such discounts lies at the intersection of several legal regimes.
Key aspects:

1. Consumer law

Discounts that:

• are not accompanied by an increase in the base price,
• do not make the choice of one payment method mandatory,
• designed as a transparent marketing campaign,

are generally considered part of a loyalty program and do not violate consumer rights .

The buyer retains the freedom of choice: to take advantage of this offer or to pay by any other method.

2. Civil law relations

The discount can be considered as:

• element of the agreement between the platform and the user,
• demand stimulation tool,
• an option that does not affect the availability of the product.

Provided the conditions are transparent, legal risks are minimal.

3. Antitrust regulation

The focus is shifting from consumer rights to the competitive environment.
Regulators are interested in:

• does the platform create an advantage for the affiliated bank;
• Do players have equal access to competitive tools?
• Is the provision of a discount related to a dominant position in the market?

Experts note that proving a violation of competition is only possible by confirming that the bank and platform actually operate within the same market.

Preferences for intra-group cards: an acceptable practice or a risk of restricting competition?

The debate on this issue shows the existence of two equal but opposite approaches.

Arguments against

• discounts are based on the absence of fees for internal payments, which is not available at other banks;
• instant benefits are preferable to classic bonuses and cashbacks;
• Ecosystem banks gain an advantage through their own payment structure.

Arguments in favor

• Similar mechanisms have been used by banks and retailers for decades;
• Digital platforms offer discounts regardless of product category, which increases the availability of benefits;
• Participation in loyalty programs is available to all banks based on commercial agreements;
• Limiting only online platforms creates an uneven playing field for market players.

Several comments note that banning such tools specifically for marketplaces would create a bias:
other industries would be able to continue using bonus programs without restrictions.

Consequences of the ban: impact on the market, competition and users

Experts assess the potential consequences of the initiative as significant.

For financial institutions in ecosystems

• the attractiveness of branded cards may decrease;
• the profitability of digital banks will fall;
• Companies will be forced to switch to classic cashbacks without any size limit.

For digital platforms

• the ability to influence the price of goods will decrease;
• one of the key mechanisms of price competition will disappear;
• The position of offline retail may be significantly strengthened.

For consumers

• the disappearance of discounts will lead to a price increase, according to experts, of 15-20%;
• the number of offers with favorable conditions will decrease;
• the variety of ways to achieve savings will decrease.

For a competitive environment

• there may be a shift in demand in favor of offline retail and large banks;
• Restricting digital platforms will create an asymmetry between market participants;
• It is possible that regulation in the area of the platform economy will become more active.

On the one hand, loyalty programs are a standard market tool, long used in the financial and retail sectors. On the other hand, their use within ecosystems raises concerns regarding non-discriminatory access to the payment services market.

Any regulation must take into account several factors simultaneously:

• impact on the final cost of goods;
• conditions of competition and access of participants to loyalty programs;
• transparency and voluntary participation of users;
• risks of excessive regulatory pressure on digital platforms.

Given the dynamic development of e-commerce, this issue requires a balanced approach. Ill-considered restrictions could lead to higher prices, limited options for buyers, and a weakening of the market’s innovative potential.