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Mastercard Considers Selling Majority Stake in UK Payments Unit Vocalink, FT Reports
Mastercard is exploring the sale of a majority stake in its UK-based payments systems operator, Vocalink, potentially returning the critical infrastructure to British ownership, according to a report from the Financial Times citing people familiar with the matter.
Details of the Potential Sale
The discussions, which are said to be in a preliminary stage with no firm offers yet made, could see Mastercard divest a 51% stake in the business. Such a deal could value the transaction at approximately £400 million (about $508 million), the FT reported.
Key details from the report include:
- Potential Buyer: One entity mentioned as a possible acquirer is DeliveryCo, an organization backed by the UK banking industry to manage procurement for the country's next-generation retail payments platform.
- Timeline: Any potential transaction is considered unlikely to be completed before next year.
AdStrategic Context and Background
The potential sale comes amid growing concerns about the U.S. ownership of a strategically important UK financial asset. Vocalink's technology underpins a significant portion of the UK's payments infrastructure, including the Bacs and Faster Payments services.
Mastercard acquired Vocalink in 2016 from a consortium of 18 UK lenders for an initial payment of £700 million (approximately $950 million at the time), with additional performance-based payments. The move to explore a sale also aligns with efforts by the UK government and the Bank of England to foster greater competition within the nation's retail payments sector, according to the FT.