Mastercard has appointed Sir Jon Thompson, a veteran of the UK civil service, to chair Vocalink, its UK subsidiary responsible for operating key parts of the nation’s payment infrastructure. The move, currently awaiting approval from the Bank of England, comes as Vocalink prepares to bid for a contract to develop a modern payments platform for the UK, a project intended to increase competition in the sector.
Thompson’s appointment is seen as an effort to demonstrate the independence of Vocalink’s governance, according to individuals familiar with the decision. Concerns have been raised regarding the dominance of Mastercard and Visa in the UK payments market, with critics arguing that their control could lead to higher costs and vulnerabilities in the system. The government’s planned new payments platform aims to address these concerns by establishing a system based on bank-to-bank transfers, bypassing the fees associated with traditional debit and credit cards.
Sarah Breeden, Deputy Governor for Financial Stability at the Bank of England, recently highlighted the cost of card payments to UK merchants, noting an average fee of 0.6% per sale. She suggested that increased competition in the payments landscape could drive down these costs. Vocalink, which currently processes over 14 billion UK retail payments annually, is positioned to compete for the contract, but its ownership by Mastercard has been cited by some banking executives as a potential obstacle.
Thompson brings significant experience to the role, having most recently served as chair of Frasers Group, the retail business owned by Mike Ashley. Prior to that, he chaired the High Speed 2 rail project and held several high-ranking positions in the UK public sector, including head of the country’s accounting watchdog, chief of the tax authority (HMRC), and Permanent Secretary of the Ministry of Defence. Vocalink has been seeking a new independent non-executive chair since Tim Murphy, a senior Mastercard executive, took on the role in an interim capacity following the departure of Elizabeth Fullerton-Rome in late 2024.
Fullerton-Rome’s departure followed the discovery of compliance failings within Vocalink, resulting in a £11.9 million fine from the Bank of England last year – the first such penalty levied by the central bank against a financial market infrastructure provider. The fine related to weaknesses in Vocalink’s systems and controls and represents a setback for the company’s bid for the new payments system contract.
While Bank of England officials have indicated that multiple companies are capable of delivering the new platform, some industry executives believe Vocalink’s existing infrastructure gives it a considerable advantage. Vocalink’s technology currently supports the Bacs direct debit system, handling 90% of UK wage payments, the faster payments system which processed £4.2 trillion in transfers in 2024, and the Link ATM network comprising 47,000 cash machines.
In a statement to the Financial Times, Vocalink emphasized its unique position, stating, “The combination of our UK regulatory oversight and ownership by Mastercard gives us a unique platform to invest in, secure and deliver world-leading payments for the UK.” The Bank of England declined to comment on the appointment. Requests for comment from Sir Jon Thompson and Frasers Group were not answered.
