Mastercard has opened discussions about selling a majority stake in Vocalink back to UK banking interests, according to people familiar with the matter. Sources say the talks are at an early stage and that no binding offers have been submitted.
The talks centre on the payments operator Vocalink, which Mastercard acquired from a consortium of 18 British lenders in 2016 for an initial consideration of 700 million pounds - approximately $950 million - with further sums contingent on the business meeting specified performance targets.
Among scenarios under consideration is the sale of a 51% stake in Vocalink, a transaction that could place the value of the block at about 400 million pounds. Those involved in the discussions have not signalled any agreement on price or structure, reflecting the preliminary nature of talks.
One party identified as a potential buyer is DeliveryCo, a banking industry-backed vehicle established to handle procurement for Britain’s next-generation retail payments platform. Observers say any transaction involving DeliveryCo or other bidders is unlikely to be completed before next year.
The idea of transferring a controlling interest in Vocalink back to domestic banking bodies comes against a backdrop of increased attention from UK authorities. The government and the Bank of England have been encouraging greater competition in the retail payments sector, and that policy focus is part of the context for discussions over Vocalink’s ownership.
For now, all sides describe the talks as exploratory. There are no confirmed offers, and no timetable has been set for progressing any potential agreement. Given the early stage, parties involved say further developments remain uncertain and will depend on subsequent negotiations and decisions by potential buyers and Mastercard.
Contextual note: The details above reflect the status of discussions as reported by people familiar with the talks; they do not indicate a completed transaction or agreed terms.