VocaLink, the payment transaction specialist, has today signed a contract with the Swedish national processor, BGC, to process the majority of Sweden's automated payments.
Today's announcement marks a significant change in the payment processing landscape. In a groundbreaking deal, the processing for a national payments scheme has been outsourced to a non-domestic supplier. BGC has engaged VocaLink in an outsourcing deal which will see the majority of Swedish direct debit and credit transfer payments being processed by VocaLink. Under the arrangement, BGC will continue to manage its customer relationships whilst IT development and operations will be transferred to VocaLink.
Work to migrate payments to the VocaLink infrastructure is now underway and is targeted for completion by the beginning of 2010 at which point VocaLink will manage the day to day operations of the Swedish Bankgiro system.
"Our partnership with VocaLink facilitates a very strong and modern product offering to our customers," says Eva Gidlöf, Chief Executive Officer at BGC. "VocaLink is the leading European payment processor, with modern, currency independent and SEPA-ready products with very competitive pricing. In addition, VocaLink maintains the same high quality and security levels as BGC."
The European payment market is undergoing regulatory change that will rationalise the payment market, improving competition and lowering prices. For companies and private individuals it will bring quicker, simpler and cheaper payments. The partnership between BGC and VocaLink is a clear step forward in the consolidating European payment market and is part of BGC's long-term strategy to become a market-leading supplier of payment solutions.
"Marion King, Chief Executive Officer at VocaLink says: "We are delighted to be working in partnership with BGC. To be tasked with processing the bulk of Sweden's domestic payments demonstrates a new and efficient operating model in a dynamic and changing market. Our partnership with BGC is another major step in VocaLink's international growth as we bring our products and expertise to new markets."