Voca finds the missing Link

Voca and Link intend to merge to form one of Europe's largest payment processing organisations.

The combined company will be known as VocaLink - and will see payment processing, through Voca, added to ATM services and real-time payments, through Link.

Voca chief executive Marion King told silicon.com the proposed merger comes with growth and competing in Europe in mind.

King, who will become chief executive of the new company, said: "It's not about cost cutting and rationalisation."

The union should also address next-generation payment services including those that are online and mobile.

The new company will be aiming to take advantage of the Single European Payments Area (Sepa), due to come in between 2008 and 2010.

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King said: "[Sepa's] creating huge interest and will result in big changes."

She said the new company will be well-positioned to embrace the opportunities presented by Sepa.

VocaLink has no trading presence in Europe at the moment but aims to work there with major banks.

Voca and Link have been working together on the Faster Payments project - a UK banking initiative to speed up internet, phone and standing order payments - with the goal of making real-time payments a reality by November this year.

The merger is slated to be completed by May, subject to approval from the Office of Fair Trading.