Vocalink is reportedly in talks to merge with rival Sia
Payments infrastructure company Vocalink is reportedly in talks for a £2bn merger with Italian counterpart Sia.
According to Sky News the discussions are said to be at a preliminary stage, and could take several months before an agreement is reached.
Vocalink declined to comment.
VocaLink runs the Faster Payments Service and BACs which handle trillions of pounds worth of payments everyday, including mortgage transactions and salary transfers.
Director of innovation at payments consultancy Consult Hyperion Dave Birch told City PM: “I understand the logic of [Sia] linking up with VocaLink. VocaLink have been signing deals around the rest of the world outside Europe.”
“Value is shifting from the “pipes” to value added services,” he added.
The company has recently invested large amounts of cash and launched mobile payments app Zapp, which allows users to pay directly in store using a bank transfer, potentially eliminating the need for a credit or debit card.
Sainsbury’s, Asda and House of Fraser will soon accept payments from the app.
VocaLink is co-owned by 17 of Britain's biggest high street lenders.