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> What on earth makes you think this is true? Do you have any idea how complex it is to set up an inter-bank payment scheme? Vocalink are not even remotely easy
by neximo64 6y ago
> What on earth makes you think this is true? Do you have any idea how complex it is to set up an inter-bank payment scheme? Vocalink are not even remotely easy to supplant, banks will just pass the extra costs onto merchants and wash their hands of it. There’s no profit in providing free financial services.
I know this industry quite well. Btw, this has already happened. NPSO now runs Faster payments not Vocalink anymore. Vocalink sells the stuff to banks to connect to NPSO & that helps square up card transactions too. You can also connect to NPSO directly using documented open ISO standards and not pay Vocalink anything.
[1] https://www.bankofengland.co.uk/news/2018/may/consolidation-of-three-uk-payment-system-operators https://www.bankofengland.co.uk/news/2018/may/consolidation-...
- avianlyric 6y agoExcept VocaLink still own and operate FPS’s central infrastructure, that’s not going to change anytime soon. Even if there was the political will to change it, there isn’t really the technical capability. They also own the only real FPS payment gateway (although you don’t need to use them). It’s true that Pay.UK sets the participants fees etc But it’s not hard to see them increasing them to help deal with fraud costs if Open Banking payment initiation takes off. I know this because I was involved in preventing the fees from being increased that last time this was proposed. You can also bet money that MasterCard will use their ownership of VocaLink to find a way to increase their cut of FPS fees.