25 September 2017
visit www.avoka.com

Mastercard gets CMA approval for Vocalink acquisition

11 April 2017  |  7935 views  |  1 Vocalink web logo

The UK's Competition and Markets Authority (CMA) has cleared Mastercard's £700 million acquisition of Vocalink after the card giant promised to take steps to address the watchdog's concerns.

In January, the CMA announced that Mastercard's proposed acquisition of VocaLink was facing an in-depth investigation unless the companies could address its competition worries over the deal.

But this has been headed off thanks to a promise to open up connectivity to the Link ATM network for alternative providers, transfer or licence the intellectual property rights relating to the Link Lis5 messaging standard, and contribute to member switching costs.

With the CMA satisfied, the acquisition is expected to close within weeks, providing a windfall for Vocalink's 18 bank and building society owners.

The CMA had feared that the acquisition would give MasterCard too much of an advantage when it comes to bidding for contracts in the provision of infrastructure services to Link, which accounts for 70,000 cash machines across the UK and Europe

The CMA deems that VocaLink and MasterCard are two of just three credible providers of the hardware, software and secure telecommunications networks for the Link ATMs - the third being Visa.

Michael Miebach, chief product officer, Mastercard, says: "We believe the future of payments will be defined by choice. Adding bank account-based payments alongside our card network extends what we can do and how we can do it. Together, we’ll be one partner to meet all payment needs of businesses, governments and consumers."

Comments: (1)

David Griffiths
David Griffiths - Number19 Consulting - Hertford | 11 April, 2017, 17:14

I don't get it.

1 thumb up! 1 thumb up! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

VocaLink and BancTec win UK cheque clearing mandate

VocaLink and BancTec win UK cheque clearing mandate

30 March 2017  |  9016 views  |  23 comments | 7 tweets | 10 linkedin
CMA gives provisional nod to Mastercard remedies for VocaLink takeover

CMA gives provisional nod to Mastercard remedies for VocaLink takeover

18 January 2017  |  5684 views  |  0 comments | 4 tweets | 6 linkedin
Watchdog questions Mastercard takeover of VocaLink

Watchdog questions Mastercard takeover of VocaLink

04 January 2017  |  17031 views  |  1 comments | 19 tweets | 18 linkedin
MasterCard agrees £700m VocaLink acquisition

MasterCard agrees £700m VocaLink acquisition

21 July 2016  |  16804 views  |  15 comments | 36 tweets | 38 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.sibos.comvisit www.ncr.comvisit www.vasco.com

Top topics

Most viewed Most shared
AXA launches blockchain to cover late flight compensationAXA launches blockchain to cover late flig...
11499 views comments | 16 tweets | 30 linkedin
SBI Ripple Asia advances on South KoreaSBI Ripple Asia advances on South Korea
9125 views comments | 16 tweets | 1 linkedin
European Commission makes fintech a priority in supervisory shakeupEuropean Commission makes fintech a priori...
8603 views comments | 34 tweets | 46 linkedin
hands typing furiouslyBlockchain is a new way of thinking?
7240 views 2 | 10 tweets | 1 linkedin
Sophia the humanoid gets UBS conference speaking gigSophia the humanoid gets UBS conference sp...
7009 views comments | 16 tweets | 19 linkedin

Featured job

Competitive base + commission + benefits
Denmark, Finland, Iceland, Norway or Sweden

Find your next job