Vocalink, leader in the UK’s paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More infrastructure, has concluded a five-year deal with China UnionPay International, the most important payment card issuer in China. The agreement marks a significant step in the development of Europe’s payment industry and will thus enable billions of China UnionPay clients to use ATM’s in UK and Europe for the first time.
Both Wei Zhihong, General Manager of UnionPay International Europe, and Sara Parker, Product Director at Vocalink, stated that this partnership is crucial for the international development strategy of their respective companies. With 2.9 billion cards in circulation, China UnionPay is the world leading card scheme interms of number of cards.
Vocalink recently announced a major deal with Link – an ATM network also operating in the UK – asserting that they will underpin the transactions of about 70,000 ATMs owned by Link. Nevertheless, the group’s ownership might changeThis is the action by which certain banknotes and/or coins are exchanged for the same amount in banknotes/coins of a different face value, or unit value. See Exchange. More shortly. If the payment infrastructure provider currently belongs to the UK’s largest high street banks, they were however called by the UK’s payment regulator to reduce their stake to boost competition. Some private equity funds including CVC Capital Partners and Permira might well have already started discussions to acquire interests in the group, a process that is often observed in Europe in recent years as the number of bank-owned structures keeps decreasing.
Source: Financial Times, “Vocalink seeks to cashMoney in physical form such as banknotes and coins. More in with China’s UnionPay deal”; May 15, 2016.