CMA accepts Mastercard’s proposal to address competition concerns following the acquisition of VocaLink

Share this post

In a move that will no doubt come as relief to Mastercard and VocaLink, the Competition and Markets Authority has today approved the soon-to-be newly merged company’s pledge to dispel monopoly concerns by opening up part of VocaLink’s network to competitors.

The CMA conducted a formal consultation into the proposed merger, which has now been concluded following responses from Mastercard and VocaLink which included proposals to relax the new company’s grip on the market.

VocaLink and Mastercard are currently two of only three providers who have access to the Link ATM system. The agreement struck between the CMA and Mastercard includes opening the network to a new service provider and contributing to the cost of current Link members who that wish to leave to join another supplier.

The full package offered by Mastercard and VocaLink was listed on the official UK Government website as follows:

  • VocaLink making its existing network connectivity available to a new supplier of infrastructure services to Link. This could allow a competitor to use VocaLink’s connectivity to members of the Link ATM network, rather than having to build their own;
  • VocaLink transferring to Link the intellectual property rights relating to the Link LIS5 messaging standard, which members of the network use to communicate when customers use cash machines; and
  • Mastercard contributing to the cost to Link members of changing to a new supplier of infrastructure services to LINK.

Now that the CMA is happy for the deal to proceed, Mastercard is expected to pull the trigger on finalising the deal quickly.

Mastercard initially announced its intention to complete the acquisition of the payments technology company in July 2016, but the CMA quickly announced that it had concerns that the acquisition could create a conflict of interest.

VocaLink was previously owned by 18 banks in partnership, including Barclays, HSBC and Sanander, before Mastercard approached the group with an acquisition proposal last year.

More To Explore

Membership

Merchant Community Membership

Are you a member of The Payments Association?

Member benefits include free tickets, discounts to more tickets, elevated brand visibility and more. Sign in to book tickets and find out more.

Welcome

Log in to access complimentary passes or discounts and access exclusive content as part of your membership. An auto-login link will be sent directly to your email.

Having trouble signing?

We use an auto-login link to ensure optimum security for your members hub. Simply enter your professional work e-mail address into the input area and you’ll receive a link to directly access your account.

First things first

Have you set up your Member account yet? If not, click here to do so.

Still not receiving your auto-login link?

Instead of using passwords, we e-mail you a link to log in to the site. This allows us to automatically verify you and apply member benefits based on your e-mail domain name.

Please click the button below which relates to the issue you’re having.

I didn't receive an e-mail

Tip: Check your spam

Sometimes our e-mails end up in spam. Make sure to check your spam folder for e-mails from The Payments Association

Tip: Check “other” tabs

Most modern e-mail clients now separate e-mails into different tabs. For example, Outlook has an “Other” tab, and Gmail has tabs for different types of e-mails, such as promotional.

Tip: Click the link within 60 minutes

For security reasons the link will expire after 60 minutes. Try submitting the login form again and wait a few seconds for the e-mail to arrive.

Tip: Only click once

The link will only work one time – once it’s been clicked, the link won’t log you in again. Instead, you’ll need to go back to the login screen and generate a new link.

Tip: Delete old login e-mails

Make sure you’re clicking the link on the most recent e-mail that’s been sent to you. We recommend deleting the e-mail once you’ve clicked the link.

Tip: Check your security policies

Some security systems will automatically click on links in e-mails to check for phishing, malware, viruses and other malicious threats. If these have been clicked, it won’t work when you try to click on the link.

Need to change your e-mail address?

For security reasons, e-mail address changes can only be complete by your Member Engagement Manager. Please contact the team directly for further help.

Still got a question?