VocaLink 'is right not to merge core IT'

Plans by payment services companies Voca and Link to keep their core systems separate after their proposed merger are a "smart move", according to analyst firm Butler Group.

Plans by payment services companies Voca and Link to keep their core systems separate after their proposed merger are a "smart move", according to analyst firm Butler Group.

The merger, announced last week, will create VocaLink, one of the biggest payments processors in Europe, handling more than eight billion transactions a year.

The firms are already working together to build the infrastructure for the Faster Payments initiative, which aims to deliver real-time payments to the UK market by the end of the year.

The infrastructure will also support the requirements of the Single Euro Payments Area, due to be introduced next year.

However, VocaLink plans to keep its two core technology platforms separate. Teresa Jones, senior analyst at Butler Group, said this was a smart move given the complex legacy infrastructure both parties were likely to be maintaining.

"Some of it is likely to be old and challenging to integrate," she said. "The key issue is around payment clearing. They are likely to use enterprise service bus-type technology to make their systems work together.

"If they can achieve a 10-second round trip on transactions instead of three days, as some have suggested, that would be a serious improvement to rival the US."

Related article:  Link and Voca reveal merger plans

Related article: Voca chooses Distra to support payments services

Comment on this article: computer.weekly@rbi.co.uk


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