Name: Why Mastercard Decided to Acquire Vocalink
Uploaded: 2016-08-25
Duration: 1 min 50 s
Description: It spent $920 million.

[ SOUND ] You know P2P has been all the rage. You see a service like Venmo, but there are several others. So PayPal owns Venmo. This is a fascinating category because right now, it's not monetized. Companies are pursuing adoption, but they're not really making and money in those transactions. How are you guys looking at those? We basically saw a situation where over 50 years we were predominately focused on P to M. Consumers paying merchants for goods and services. But if you take a step back and say where are payments flows in the overall landscape of payments. P to p to your question and b to b business is paying businesses. So, we should be participating in a much broader range of payment flows. And then, if you take a very specific look in the payment landscape. We will see that about 50 % of payment flows in the largest, 50 largest countries around the world is in ACH. All right, there you go. So, we started look, who is successful in the ACH space? First of all we looked at the mirror and said we are network in Syria we could be doing this. But. You know, we don't really have the track record right now or the experience in something that looks similar but is essentially not. The data types are different, the architecture, all that. Right. So, we said partnering will be the way to go. We scanned the world and we found VocaLink as the leader in ACH payments and that is the kind of choice that is interesting to consumers. Back to, I want to pay with a card, I want to pay with my digital wallet or I want to use my bank account. Or a debit card, whatever it might be. We want to be the company that says whatever, consumer, you want to do, you can get it through MasterCard. [ BLANK_AUDIO ]