Voca, the largest processor of direct debit and credit transactions in Europe, and LINK, the network behind the LINK ATM scheme which powers almost every cash machine / ATM in the UK, have announced they are to merge to form one of the leading SEPA-ready payments processors in Europe with a forecast volume of over 8 billion transactions.
VOCA (formerly known as BACS) is the largest UK payment processor with 90% of the UK's salaries, 70% of household bills and the majority of state benefits. It also handles 15% of Europe's automated payment volume. LINK operates the UK cash-machine network connecting 105 million card accounts and over 60,000 ATMs. It processes 3 billion transactions per annum. Both firms are part of the UK's Critical National Infrastructure.
A major part of the rationale for this merger will be the arrival of the Single Euro Payment Area (SEPA), the planned European system that will allow consumers to make cashless payments throughout the euro area from a single account under the same basic conditions, regardless of their location. This is in contrast to the current state with multiple, national payment operations. The new facilities will come into operation between 2008 and the end of 2010 and offer a major opportunity for consolidation of payment facilities and services. Both Voca and LINK have been active in developing new services to take advantage of SEPA, and LINK is a founder member of the European Switches Forum, an association that encourages interoperability between domestic ATM and point-of-sale processors.
Current Voca chief executive Marion King will be the merged company's CEO. She said, "Voca and LINK coming together is an exciting prospect. We're already working together successfully to build the UK's Faster Payments system and the operational and intellectual synergies are clear. The move will create the broad product portfolio needed to compete in a wider European market in light of the introduction of SEPA."
The merger is dependent on approval from the Office of Fair Trading (OFT). Once that is obtained, Voca and LINK will operate as a single operation – Vocalink.
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