Mastercard is exploring the sale of a majority stake in its UK payments subsidiary Vocalink back to British banks as it responds to concerns about a critical asset being under U.S. ownership, the Financial Times reported on Monday, citing people briefed on the talks.
Vocalink is responsible for running much of the UK retail payments system. It designs, builds and operates bank account-based payment systems in Britain, processing over 90% of salaries, more than 70% of household bills and 98% of state benefits, according to its website.
Mastercard bought Vocalink in 2016 for £701 million ($937.38 million) from a consortium of British banks.
According to the FT report, a deal for a 51 percent stake could be worth about £400 million ($534.88 million).
DeliveryCo, an entity backed by many of the UK’s leading banks and payment companies, is believed to be a potential buyer, the report said.
Reuters could not immediately verify the report. Mastercard, Vocalink and DeliveryCo did not immediately respond to a Reuters request for comment outside regular business hours.
The report of stake sale comes amid the Bank of England’s growing concerns about the lack of competition for Mastercard and Visa, which handle a majority of British retail payments.
The Bank of England fined Vocalink £11.9 million ($15.92 million) last year for falling short of its obligation to have adequate risk management and governance arrangements.
Source: Reuters.com