The UK’s Competition & Markets Authority has given its blessing to the Mastercard VocaLink deal.
The CMA gave final approval for the proposed set of remedies that address the competition concerns the CMA identified earlier this year. The deal is now expected to close in the coming weeks.
A powerhouse in bank account-based payments, VocaLink’s technology powers immediate payments (also known as fast ACH) in the world’s largest financial markets. This includes the UK, Singapore and Thailand, with the U.S. scheduled to go live later this year. The acquisition will enable Mastercard to play a more strategic role in the UK as well as in other markets around the world.
VocaLink will add its outstanding team with specialised expertise, unique bank account-based technology and services such as fraud management analytics to the existing Mastercard business.
The combination will enable a more holistic approach to retail, person-to-person and business-to-business payments and a broader range of services. This presents an additional opportunity to make a deeper and sustained shift from the use of cash and cheques in business, government and personal payments.
Now that the regulatory review has concluded, Mastercard and VocaLink will work to close the transaction within the next few weeks. Upon closing, David Yates will join the Mastercard management committee and become executive chair of VocaLink. Paul Stoddart will be promoted to CEO of VocaLink.
In the UK, VocaLink processes over 90% of salaries, more than 70% of household bills and almost all state benefits. It implemented the FAST service in Singapore and processes the majority of Sweden’s automated payments. VocaLink’s high availability, resilient payment systems power the Faster Payments Service on behalf of the Faster Payments Scheme, the Account Switching platform, Bacs and the Direct Debit Scheme.
VocaLink also connects the world’s busiest network of over 70,000 ATMs through the LINK scheme. Last year VocaLink processed over 11 billion transactions with a value of £6 trillion.