VocaLink signs UK’s largest ever ATM processing deal with LINK
The deal is the UK’s largest ever ATM processing deal and is expected to deliver over 16 billion transactions.
Under the five-year contract with LINK Scheme and its 38 members, VocaLink will provide ATM switching and settlement services and will support the processing of over 70,000 ATMs connected to LINK in the UK and across Europe.
Over 97% of all LINK transactions are free for consumers.
Over the past 12 months, LINK ATM transactions have risen to over 3.2 billion, the “highest levels seen so far” in the UK.
While VocaLink secures new deals it could be the target of MasterCard as the US multinational mulls a £1 billion-acquisition.
Up to 13 banks, which are shareholders in VocaLink, have “approved a period of exclusivity within which MasterCard can negotiate a takeover of the company”. The talks are ongoing and nothing has been confirmed yet.
The UK’s Payment Systems Regulator (PSR) told banks in February they should sell their stake in VocaLink to “help increase innovation and competition”.