Updated February 2nd, 2024 at 19:43 IST
The company is vital to the UK economy, processing over 90% of salaries, more than 70% of household bills, and nearly all state benefit payments.
Tata Consultancy Services (TCS) is reportedly a top contender to take over the administration of the Faster Payments Service in the United Kingdom.
The company is a crucial component of the British economic framework as it processes over 90 per cent of salaries, more than 70 per cent of household bills, and virtually all state benefit payments, according to Sky News. The procurement process, surrounded by secrecy, is under scrutiny by regulators and the Bank of England, the report added.
While a formal decision is pending, sources suggest that TCS has gained an edge over Vocalink. The potential involvement of TCS, a Tata arm, in the UK’s economic infrastructure has raised eyebrows, especially given the recent decision by another Tata company, Tata Steel, to lay off thousands of steelworkers in Wales. Tata Steel’s restructuring, backed by a £500m government grant, has sparked controversy.
The decision on the Faster Payments Service operator is on hold until the government releases its revised sector strategy, Vision for Payments. The Payment Systems Regulator and the Bank of England are reviewing the proposals, and the process is currently paused. A previous government review noted gaps in consumer protection and the need for a more seamless experience in the faster payments system.
Pay.UK, the operator overseeing the procurement process for the New Payments Architecture, stated that the process is ongoing, undergoing regulatory reviews, and refrained from further comments. Mastercard, which owns Vocalink, indicated that it has not received communication from Pay.UK on the matter, and the bid process is in the regulatory non-object phase. TCS declined to provide any comments.