MasterCard has wrapped up the takeover of VocaLink that will help the acquirer to expand beyond card-based payments to drive the major types of electronic payment transactions.
In July last year, MasterCard agreed to acquire VocaLink for £700m ($920m).
The deal faced regulatory scrutiny from the UK’s Competition and Markets Authority (CMA), amid concerns that the acquisition will weaken competition in supply of ATM network services in the country.
When MasterCard agreed to address the CMA’s concerns, it received the green signal to go ahead with the acquisition in the UK.
VocaLink powers real-time bank account-based payments (fast ACH) in the UK, Singapore and Thailand, with the US scheduled to go live later this year. Its technology is also the crux of the UK’s ATM and traditional ACH systems, as well as a new mobile offering that enables consumers to pay for retail purchases directly from their bank accounts.
MasterCard chief product officer Michael Miebach said. “This is a transformational deal. This acquisition brings Vocalink’s world-class technology and world-class people to MasterCard at a time of continued change in payments.
“I am eager for what the future will bring: more innovation, inclusion and choice that lets people, businesses and governments pay the way they want.”
MasterCard said that the VocaLink technology will allow it to further innovate retail transactions and expand in payment flows such as person-to-person, business-to-business and government disbursements.