Mastercard is bolstering its position in the evolving UK payments landscape with the appointment of Sir Jon Thompson as chair of its UK subsidiary, Vocalink. The move comes as Vocalink prepares to compete for a pivotal contract to develop a new payments platform for the country, a project designed to modernize how money moves within the UK economy. This strategic appointment signals Mastercard’s commitment to securing a leading role in the future of British financial infrastructure and addressing concerns around competition in the payments sector.
The UK government’s push for a new payments platform stems from a desire to increase competition and lower costs for merchants. Currently, card payments—primarily handled by Mastercard and Visa—cost UK merchants an average of 0.6% of each sale, according to Bank of England Deputy Governor Sarah Breeden. Breeden recently highlighted that increased competition, through an alternative payment option, could drive down these costs.
A Veteran Public Servant Takes the Helm
Sir Jon Thompson brings a wealth of experience to Vocalink, having held several high-ranking positions in UK public service. Before joining Frasers Group as chair in 2023, stepping down from his role as chair of High Speed 2, he served as head of the country’s accounting watchdog, chief of the tax authority (HMRC) and permanent secretary of the Ministry of Defence. His appointment, which is still awaiting approval from the Bank of England, is intended to underscore the independence of Vocalink’s board, a key consideration given its crucial role in the UK’s financial infrastructure.
Vocalink currently processes more than 14 billion UK retail payments annually, underpinning essential systems like Bacs direct debit (handling 90% of UK wages), the faster payments system (which processed £4.2 trillion in transfers in 2024), and the Link ATM network of 47,000 cash machines. The company’s existing infrastructure gives it a strong foundation for competing for the new payments platform contract, but its ownership by Mastercard has raised questions among some banking executives.
Addressing Concerns About Competition and Past Compliance Issues
The appointment of Thompson is seen as a proactive step to address concerns about the potential for bias stemming from Vocalink’s ownership. There has been ongoing scrutiny regarding the dominance of Mastercard and Visa in the UK retail payments market. The lack of robust competition raises the risk of higher costs and vulnerabilities in the event of a cyberattack or system outage.
Adding to the complexity, Vocalink faced a setback in 2025 when it was fined £11.9 million by the Bank of England for failing to comply with requirements to fix weaknesses in its systems, and controls. This was the first fine of its kind levied by the central bank against a financial market infrastructure provider. The penalty stemmed from a shake-up following the discovery of these compliance failures, leading to the departure of Elizabeth Fullerton-Rome and her replacement by Mastercard executive Tim Murphy in an interim capacity. Vocalink has been actively seeking an independent non-executive chair since then.
The Future of UK Payments
Despite the challenges, Vocalink believes it is well-positioned to win the contract for the new payments platform. The company emphasizes its existing infrastructure and the “unique platform” provided by its combination of UK regulatory oversight and Mastercard ownership, as stated in a recent communication to the Financial Times. However, Bank of England officials have indicated that numerous companies are capable of delivering the project, and some industry observers believe that an incumbent provider like Vocalink has a significant advantage.
The new platform aims to facilitate transfers between bank accounts, offering a potentially lower-cost alternative to debit and credit card transactions. The success of this initiative will be crucial in fostering a more competitive and resilient payments ecosystem in the UK. The Bank of England is expected to announce a decision on the contract in the coming months.
The next key milestone will be the Bank of England’s approval of Sir Jon Thompson’s appointment, a decision anticipated in early April 2026. Further updates on the new payments platform contract are expected to be released by the BoE throughout the spring.
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