Mastercard Weighs Options for Vocalink Ownership
Mastercard (NYSE:MA) is reportedly considering selling a majority stake in UK payments infrastructure provider Vocalink back to British banks, according to a report by the Financial Times citing people familiar with the matter.
The discussions are understood to be at an early stage, with no formal bids or agreements currently in place.
Potential Deal Could Return Control to UK Banking Sector
Mastercard purchased Vocalink in 2016 from a consortium of 18 UK banks for an initial £700 million (approximately $950 million), with additional payments linked to future performance.
According to the report, a sale of a 51% interest could value Vocalink at around £400 million.
One organisation reportedly being considered as a potential buyer is DeliveryCo, an industry-backed entity established to manage procurement for the UK’s next-generation retail payments platform.
However, any transaction is not expected to be completed before next year.
Strategic Importance of UK Payments Network
The reported talks come as policymakers continue to examine the ownership and competitiveness of the UK’s retail payments infrastructure.
The Financial Times said the possible sale coincides with ongoing efforts by the UK government and the Bank of England to encourage greater competition across the country’s retail payments market.