VocaLink signs ATM deal with UnionPay
VocaLink, the payment systems provider, has signed a five-year deal with China’s UnionPay International, which will enable UnionPay cardholders to access ATMs in the UK and continental Europe.
Under the deal, VocaLink will provide ATM transaction processing and UnionPay sponsored access. VocaLink says on average, the value of UnionPay card withdrawals from UK ATMs are “five times the average value” of UK ATM withdrawals.
Wei Zhihong, general manager of UnionPay International Europe, says the partnership represents a “significant milestone” in its goal to increase access to UnionPay cards internationally.
Zhihong adds that the firm was “impressed with VocaLink’s proven international track record as a transaction processor of cards as well as their demonstrated speed to market”.
VocaLink’s story
This latest announcement follows a number of other recent deals for VocaLink.
It signed a five-year deal to provide “exclusive” processing for the LINK ATM network. This is the UK’s largest ever ATM processing deal and is expected to deliver over 16 billion transactions.
FIS and Vocalink’s PayPort also became the first to gain accreditation to supply access to Faster Payments through its New Access Model.
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”.
