UK payments system alternative discussions have moved into a decisive phase as senior banking executives prepare to formally establish a domestically controlled card payments network, amid growing concern over geopolitical risk and reliance on US-owned financial infrastructure.
Behind closed doors this week, leading figures from Britain’s largest banks will hold their first structured meeting aimed at creating a national card payments platform designed to operate alongside existing global networks.
The initiative reflects mounting anxiety within the City that political decisions made abroad could expose the UK economy to sudden disruption.
The talks will be chaired by the UK chief executive of Barclays, Vim Maru, and will include representatives from high street lenders, building societies, and payment specialists. Industry sources say the group intends to agree on governance structures, funding responsibilities, and a long-term delivery timetable.
The project has circulated quietly for several years, but recent international developments have injected fresh urgency. Executives point to rising geopolitical tension and an increasingly fragmented global order as reasons to reduce dependency on overseas-controlled financial rails.
One senior banking figure involved in the discussions said the objective was resilience rather than confrontation. “This is about continuity,” the executive noted. “If something unthinkable happens, payments still need to work.”
At present, the vast majority of card payments made in Britain are processed through Visa and Mastercard, two companies headquartered in the United States. Industry estimates suggest these networks account for roughly 95% of UK card transactions.
That dominance has become more consequential as cash usage continues to decline across the country. From grocery shopping to public transport, digital payments have become embedded in everyday economic life, leaving little room for prolonged system outages.
An executive familiar with contingency planning warned that a sudden suspension of card services would have far-reaching effects. “If card payments stopped, it would be like rewinding decades of progress in a matter of hours,” the source said.
“Businesses would struggle to function.”
Trump-era uncertainty sharpens focus
Concerns have intensified following recent rhetoric from Donald Trump, particularly around US foreign policy and alliances.
Although no direct threat has been made toward financial infrastructure, banking leaders are increasingly uneasy about the concentration of critical services under foreign jurisdiction.
Recent history has reinforced those fears. In Russia, sanctions imposed after the invasion of Ukraine led Visa and Mastercard to suspend operations, leaving millions of consumers unable to access funds or complete everyday purchases.
European policymakers have repeatedly cited that episode as evidence of vulnerability.
In Brussels, calls have grown louder for continent-wide payment sovereignty, with lawmakers urging the creation of locally owned networks that cannot be disabled by external political decisions.
Unlike some European initiatives, the UK’s effort is being framed as collaborative rather than competitive. Both Visa and Mastercard are participating in early-stage discussions, giving them visibility into the project and a role in shaping its development.
Banks involved include Santander UK, NatWest, Nationwide, and Lloyds Banking Group, alongside payment infrastructure bodies such as Link and Coventry Building Society. Trade association UK Finance is providing administrative support.
A person close to the talks said the aim was to create a parallel system rather than displace existing networks. “This isn’t about switching anything off,” they said. “It’s about having another option if it’s ever needed.”
Government and central bank support
While the project is being funded and led by the private sector, it has quiet backing from policymakers. Officials see the initiative as a safeguard against operational shocks, cyber incidents, or geopolitical escalation.
The Bank of England has indicated that an additional domestic payment rail could strengthen overall system resilience. Deputy governor Sarah Breeden recently described such infrastructure as providing “extra protection in a changing risk environment.”
Treasury officials have also expressed interest, although they have avoided explicitly linking the project to international political tensions. Instead, the emphasis has been placed on long-term stability and innovation.
The working name for the new entity is DeliveryCo, a special-purpose organisation tasked with designing, funding, and ultimately operating the payments system.
City funders will determine its legal structure, leadership appointments, and revenue model over the coming year.
According to people involved, the central bank will contribute technical blueprints for settlement and clearing infrastructure, which will be handed over once DeliveryCo is fully established.
If timelines hold, the new system could become operational by the end of the decade. Insiders caution, however, that building payments infrastructure is complex and requires extensive testing before public rollout.
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Visa and Mastercard have both publicly welcomed the initiative, emphasising their long-standing commitment to the UK market.
In statements, the companies highlighted their investment in security, innovation, and reliability, while supporting the principle of competition.
Analysts say their involvement reduces the risk of market fragmentation while ensuring the new platform meets global interoperability standards.
Joe Garner, former Nationwide chief executive and a government adviser on payments reform, summed up the industry mood succinctly. “This was needed long before recent political developments,” he said. “Events have simply made the case more obvious.”
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