According to a report by UK-based Sky News, Mastercard Inc MA is exploring an acquisition of Vocalink, a British-based operator of the Faster Payments service.
Sky News noted that Mastercard has entered into exclusive talks to acquire Vocalink and the company's large shareholders (who happen to be large banks themselves) have approved the talks.
The publication, citing "insiders," added that Mastercard could pay around 1 billion pounds ($1.45 billion) for Vocalink which would offer a greater share of the UK debit card payments market.
Vocalink processed 11 billion transactions in the UK, representing more than half of all payments made in the UK. Meanwhile, Mastercard's market share in the UK market was just 5 percent.
By acquiring Vocalink, Mastercard would be in a better position to compete against Visa, Sky News added.
Shares of Mastercard were trading lower by more than 0.50 percent Monday morning.
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