2007 2007 07 02 citation needed headquarters london united kingdom key people david yates ceo sir john gieve chairman owner consortium of 18 banks and building societies including barclays plc the royal bank of scotland lloyds banking group hsbc and santander website www.vocalink.com vocalink is a payment systems company headquartered in the united kingdom created in 2007 from the merger between voca and link . 1 2 it designs builds and operates the uk payments infrastructure which underpins the provision of the bacs payment system the direct debit system the uk atm link switching platform covering 65 000 atm s and the uk faster payments systems . 3 vocalink processes over 90 % of uk salaries more than 70 % of household bills and 98 % of state benefits . 4 in 2013 the company processed over 10.5 billion uk payments with a value of over 5 trillion . 5 in july of 2016 mastercard purchased a 92 % stake in the company with the remainder to be held by uk banks for a period of three years . 6 contents 1 background 1.1 cruickshank report 1.2 link interchange network ltd 2 faster payments service 3 uk payments infrastructure 3.1 bacs 3.2 link 3.3 faster payments service 4 mobile payments 4.1 paym 4.2 zapp 5 international payments infrastructure 6 take home pay index 7 see also 8 references 9 external links background edit main article bacs in 1968 the joint stock banks clearing committee chaired by dennis gladwell set up the inter bank computer bureau to modernise the existing paper based standing order system . secure electronic funds transfer between banks was introduced from later that year 7 significantly reducing both the processing time and human error associated with paper based transactions particularly bulk payments . 8 in 1971 the company adopted the name bankers automated clearing services limited soon shortened to bacs which was formally adopted as the company s name in 1985 . 9 cruickshank report edit in november 1998 hm treasury commissioned a review of competition within the uk banking sector to be chaired by sir don cruickshank . reporting in march 2000 the cruickshank report of competition within the uk banking sector recommended that 10 clearance scheme ownership and management should be split from infrastructure operation and delivery infrastructure management should be conducted on a commercial basis with fair and open access to third parties a need for a low cost way to transfer money quickly 11 in response on 1 december 2003 bacs payment schemes ltd bpsl was split from bacs limited . bpsl was established as a not for profit company with members from the banking industry the purpose of which is to promote the use of automated payment schemes and govern the rules of the bacs scheme . bacs limited owns the infrastructure to run the bacs scheme . bacs limited was permitted to continue to use the bacs name for one year becoming voca limited on 12 october 2004 . 12 link interchange network ltd edit main article link uk link interchange network ltd was formed in 1985 to create interoperability between atms across the united kingdom . it became an international network in the 1990s through connection with the mastercard and visa networks . in october 2002 link launched the first service that used atms as a retail channel enabling the facility to top up a mobile phone at an atm bringing banking and mobile phones together for the consumer . 13 faster payments service edit in 2005 a joint proposal from voca and link was selected to deliver the payment processing infrastructure for the faster payments service a near real time interbank transfer for internet and telephone banking . 14 after forming a strong working partnership which brought voca s bulk processing together with link s real time payment switching the companies agreed to merge on 2 july 2007 to form vocalink . since its launch in 2008 over 3 billion real time faster payment transactions have been processed by vocalink . 2 uk payments infrastructure edit vocalink operates its services out of two data centers based in the uk ; based in harrogate 15 and dunstable . bacs edit bacs provides two payment products to consumers bacs direct credits payer initiated interbank transfers . vocalink processes 2 billion of these payments every year including over 90 % of all uk salaries and 98 % of state benefits . direct debits transfers initiated by authorised payees . three quarters of uk adults have at least one direct debit commitment ; the average person has at least six . 16 vocalink provides the underlying bacstel ip infrastructure for bacs 17 which processes over 5.6 billion of clearing and settlement of automated payments a year 18 with a value of 4.2 trillion . link edit vocalink provides the switching infrastructure behind link the busiest atm switching system in the world which switches over 3.5 billion card initiated transactions from 130 million enabled cards annually . 19 faster payments service edit vocalink designed built and operates the infrastructure for the faster payments service on behalf of the faster payments scheme . running in parallel with bacs and chaps launched in 2008 it enables interbank transfers in real time . since 2008 over three billion faster payments transactions have been securely processed by vocalink . 20 mobile payments edit paym edit main article paym vocalink provides the underlying technology to paym a mobile payment system for the uk developed by the payments council . 21 recipients are identified by their mobile phone number instead of bank details such as sort code and account number . 22 it was launched through participating banks and building societies in april 2014 23 and once users opt in will by the end of 2014 support 9 out of 10 uk bank accounts . 24 zapp edit vocalink has developed zapp a function that will reside within mobile banking apps to allow users to make real time payments to retailers when shopping online or in store . the service will be open to all financial institutions merchants acquirers and consumers when it launches in 2015 . 25 a zapp payment works through secure digital tokens which means that customers don t reveal any of their financial details to retailers . this also means that merchants do not need to store card details . zapp has been developed by vocalink who operate the uk payments infrastructure . vocalink processes over 90 % of uk salaries more than 70 % of household bills and 98 % of state benefits . in 2013 vocalink processed over 10 billion transactions with a value of over 5 trillion . zapp is backed by four uk high street banks meaning 18m consumer accounts are potentially zapp enabled hsbc nationwide metro bank santander . zapp is backed by leading payment providers meaning over 65 % of uk merchants are potentially zapp enabled . these include secure trading ; trustpay global ; checkout.com ; worldpay ; elavon ; sage pay ; realex payments ; and optimal payments . many of the uk s major retailers are already supporting zapp including asda sainsbury s house of fraser shop direct and thomas cook . zapp has already partnered with a variety of uk based innovative companies . key partners include global leaders in behavioural analytics featurespace and fexco . third party endorsement jonathan guthrie city editor financial times cashless payment system zapp looks pretty impressive . banks with over a third of uk retail accounts including hsbc and santander will offer the service . almost two thirds of uk merchants should be able to process zapp transactions that gives zapp greater apparent scale than rivals such as barclays pingit service the inauguration of services such as zapp point to the slow burn obliteration of physical cash . eden zoller principal analyst at telecoms consultancy ovum zapp has taken its time and put in place a solid foundation for its mobile payment service ahead of the launch instead of rushing to market with a half baked offering . integrating zapp with existing financial services is a good move as these are the brands that consumers trust the most to deliver m payments . the zapp application looks like it is trying to keep things simple and convenient for consumers . the ability to provide scale is a critical success factor for mobile payments and zapp has made a promising start by signing the financial brands announced . simon gompertz personal finance correspondent bbc news the fact that leading banks have committed themselves to zapp means that it is likely to be a serious contender in the race to manage our cyber wallets zapp looks like it might be most useful for online shopping as a competitor for paypal . and it will try to make inroads into the tap or wave market where people can pay by holding a card or device close to the terminal in the shop . international payments infrastructure edit on 12 july 2010 through eaps link opened all uk cash machines to the similar german girocard scheme operated by zentraler kreditausschuss . 26 similarly the vocalink agreement with the pulse network allows discover card and diners club international cardholders to use link atms . 27 vocalink also provides a gateway service to visa mastercard and china union pay . between 2007 and 2012 vocalink operated a single euro payments area clearing and settlement mechanism participating as a member of the european automated clearing house association . the service was discontinued as a consequence of the low participation of vocalink s shareholder uk banks into the platform . 28 in may 2008 vocalink signed a deal with the swedish automated clearing house bankgirot to outsource part of the swedish payments system . this was the first time that the processing of a national payments scheme has been transferred to a non domestic player . 29 in march 2014 in partnership with bcsis vocalink launched the immediate payments service ips in singapore branded locally as fast enabling 14 singaporean banks to offer the ability to transfer funds between bank accounts in real time . take home pay index edit the vocalink take home pay index tracks monthly take home pay levels in the uk . compiled using data captured by vocalink from the salary payments of over 200 ftse 350 companies and 600 public sector organisations the indices are split by broad sector group manufacturing ; services ; public sector ; ftse 350 . 30 see also edit list of foreign exchange companies payments council bacs link faster payments references edit anticipated merger between link interchange network limited and voca limited . office of fair trading . www.oft.gov.uk . retrieved 14 march 2013 . a b oft approves voca link merger . www.computerworlduk.com . retrieved 14 march 2013 . written evidence submitted by vocalink . house of commons . www.parliament.uk . retrieved 14 march 2013 . competition and choice in retail banking pdf . pg10 . vol 3 ninth report of session 2010 11 . house of commons treasury committee . retrieved 15 september 2010 . vocalink partners with bcsis to offer immediate payments in singapore . p newswire uk . 29 october 2012 . retrieved 16 april 2013 . mastercard swoops for britain s atm operator vocalink . bbc news . 21 july 2016 . retrieved 21 july 2016 . ninth report of session 2010 11 report vol 3 ed . . house of commons treasury committee . 15 september 2010 . p. 10 . bacs ltd and charteris in new initiative to help major bacs users . charteris plc. 2004 . bacs corporate history . bacs . retrieved 14 march 2013 . the cruickshank report pdf . uk treasury . 1 june 2014 . the cruickshank report competition in the banking industry under scrutiny . practical law company . retrieved 14 march 2013 . bacs . bacs . retrieved 16 april 2013 . top up