Vocalink wins Link ATM deal

Vocalink wins Link ATM deal

Vocalink has retained its role as technology provider to the UK's Link ATM network, beating off competition from four alternative suppliers for a five to 10-year contract for the provision of ATM switching and settlement services.

Currently around 70,000 ATMs in the UK are connected to the Link Network with 3.1 billion customer transactions being made in 2017.

The move to put the contract up for competing bids folloqwed demands from the UK's Payment Systems Regulator to inject an element of competition into the provision of national central infrastructure services. It marked the first time the contract had been put out to competitive tender.

The tender attracted bids from more than five organisations including Visa, FIS, and the incumbent technology provider Vocalink.

The procurement is for real-time, 24x7 ATM switching and settlement services, including real-time transaction enquiry and liability management, overnight reconciliation, and settlement via Swift to the Bank of England Real Time Gross Settlement (RTGS) system.

The tender process was overseen by law firm RPC.

Charles Buckworth, commercial partner at RPC comments: "The procurement process was far more complex than a standard outsourcing contract negotiation due to the number of parties and stakeholders involved, including two UK regulators (the Bank of England and the PSR) and 35 members of the Link Scheme."

John Howells, the Link Scheme CEO, addss: "The completion of this competitive procurement represents a major milestone for the Link Scheme and secures the provision of Link's critical infrastructure until 2031."

Comments: (5)

A Finextra member
A Finextra member 15 October, 2019, 14:02Be the first to give this comment the thumbs up 0 likes

Who were the other bidders...?

Hitesh Thakkar
Hitesh Thakkar - SME - Fintech startups (APAC and Africa) - India 16 October, 2019, 09:28Be the first to give this comment the thumbs up 0 likes

Kudos to the regulator and stake holders for evaluating the merits and awarding to deserved one. Lessons for other bidders to learn and move on.

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 16 October, 2019, 14:40Be the first to give this comment the thumbs up 0 likes

@HiteshThakkar: 

Your profile says you work for FIS. The article says FIS was one of the unsuccessful bidders. Curious to know what's your "learning and moving on" plan for your own employer.

Hitesh Thakkar
Hitesh Thakkar - SME - Fintech startups (APAC and Africa) - India 16 October, 2019, 19:06Be the first to give this comment the thumbs up 0 likes

@Ketharaman - On FIS part I like not comment on Public forum and just to add I was not part of the Bid. One other non FIS source of mine and peer from UK given me some insight on this bid after it was made public .

@Bob - Thanks for your views. I like to share my views and something that I have been advicing to business owenrs that , there are learning pages from each bid even if you win or loose because, it builds insight on each service providers strengths and weakness. Time for SWOT before and after :)

I agree that, there are other adddressable markets to be discovered by each serious players in payments and outsourcing space. I have seen traction in African region, Asian market for serious players to build new products and solutions.

For example Recently Finextra has posted - about biometric based payments getting opened up in Thailand as banks and regulators have shown keen interest. 

A Finextra member
A Finextra member 01 November, 2019, 08:26Be the first to give this comment the thumbs up 0 likes

Oh yeah. The 'no cash', card only scheme Mastercard (Vocalink) running the nation's 'cash' ATM network. No conflict of interest there then.....FCA, hello?

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