LONDON: Mastercard is exploring the sale of a majority stake in its U.K. payments subsidiary Vocalink back to British banks, the Financial Times reported Monday, as the company responds to concerns about a critical national infrastructure asset being under U.S. ownership.
Vocalink operates much of the U.K.’s retail payments system, processing more than 90% of salaries, over 70% of household bills and 98% of state benefits, according to its website.
Mastercard acquired Vocalink in 2016 for £701 million ($937.38 million) from a consortium of British banks.
A deal for a 51% stake could be valued at about £400 million ($534.88 million), the FT reported, citing people briefed on the talks.
DeliveryCo, an entity backed by many of the U.K.’s leading banks and payment companies, is believed to be a potential buyer, according to the report.
Reuters could not immediately verify the report. Mastercard, Vocalink and DeliveryCo did not immediately respond to requests for comment outside regular business hours.
The reported stake sale comes amid growing concerns from the Bank of England about a lack of competition for Mastercard and Visa, which together handle the majority of British retail payments.
The Bank of England fined Vocalink £11.9 million ($15.92 million) last year for failing to meet its obligations regarding adequate risk management and governance arrangements.
