MasterCard said it would buy a 92.4% stake in London-based VocaLink Holdings for about £700m as the world's second biggest payment network provider looks to strengthen its presence in the UK market. 

VocaLink offers payment processing services for UK payment schemes. 

After the deal closes, most of VocaLink's current shareholders will together hold a 7.6% stake in the company for at least three years, MasterCard said. 

VocaLink's existing shareholders could get an additional $220m if certain performance targets are met, MasterCardsaid. 

If the deal closes early next year, it is expected to dilute earnings per share by 5 cents in 2017 and 2018, MasterCard said. 

VocaLink's chief executive David Yates will join MasterCard's management committee after the deal closes. 

The UK company's shareholder Barclays confirmed that it was selling a majority of its shares to MasterCard for £104m.

Other shareholders, Royal Bank of Scotland and Co-opBank, said they expected to book profits of £150m and about £25m respectively.