LONDON (ShareCast) - (ShareCast News) - The Competition and Markets Authority has expressed concerns about Mastercard's takeover of VocaLink Holdings, which runs Bacs, Faster Payments and Link cashpoint services.
In particular, the watchdog said the deal could lead to competition issues with the LINK ATM network, which is run by VocaLink.

It said the merger would reduce the number of bidders and limit the ability of the LINK scheme to obtain good value when tendering for an infrastructure provider. The companies now have until 11 January to offer a remedy to address the competition concerns identified and avoid the merger being referred for an in-depth investigation.

Andrea Coscelli, acting chief executive of the CMA and decision maker in this case, said: "The LINK ATM network provides an essential service for millions of customers. It's important that LINK has a good choice of providers when it comes to supplying the necessary infrastructure so it can take advantage of the opening up of payment systems to competition. These concerns warrant a closer investigation in the event that Mastercard cannot address them at this stage."

The CMA said it does not have any concerns in the provision of payment infrastructure services to Bacs or FPS since there are many credible alternatives to VocaLink and Mastercard.

Mastercard said on Wednesday that it welcomed the CMA's decision.

"The thoroughness of the CMA's review reflects the significance of this deal and its potential for the industry. In its announcement, the CMA noted that it has no concerns related to providing payment infrastructure services to Bacs or the Faster Payments Service.

"We're pleased to have the opportunity to address their one concern, regarding the LINK ATM scheme, in the timeframe provided. This acquisition promises to bring greater choice and innovation to the payment ecosystem, enabling people, governments and businesses to pay the way they want to pay."

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