UK bank leaders are set to hold their first meeting to create a national alternative to Visa and Mastercard, driven by rising concerns that Donald Trump could potentially disrupt US-owned payment systems.
The meeting, led by Barclays’ UK CEO Vim Maru, will take place this Thursday. It will bring together a group of City financiers who will fund a new payments company designed to keep the UK economy running in case of any issues.
This initiative, funded by the City but backed by the government, has been discussed for years. However, Trump’s recent threats against NATO allies over Greenland have heightened worries that relying too heavily on US companies could endanger UK payments and the broader economy.
According to a 2025 report by the UK’s Payment Systems Regulator, about 95% of UK card transactions are processed through Mastercard and Visa. This dominance has become increasingly significant as cash usage continues to decline nationwide.
“If Mastercard and Visa were shut down, it would send us back to the 1950s,” said one executive familiar with the project, referring to a time before cards dominated the economy and businesses relied entirely on cash. “Of course, we need a sovereign payments system.”
The potential disruption could be severe. In Russia, where 60% of payments depend on Visa and Mastercard, US sanctions forced these companies to suspend services, leaving ordinary people without access to funds and unable to purchase goods.
Similar concerns are emerging in the EU, where politicians are advocating for locally owned networks that cannot be arbitrarily shut down by foreign powers. Last month, Aurore Lalucq, chair of the European Parliament’s economic and monetary affairs committee, issued a stark warning about relying on US companies for such a critical service.
“Visa, Mastercard … the urgent issue is our payment system. Trump can cut everything off,” Lalucq said. “The rest is poetry. I urgently request that the commission organize a European Airbus for payment systems: you can’t say you weren’t warned.”
In contrast, the UK is adopting a less confrontational approach, with Visa and Mastercard participating in the initiative. Both companies are part of the new funders group, alongside major banks and payment firms such as Santander UK, NatWest, Nationwide, Lloyds Banking Group, the ATM network Link, and Coventry Building Society.
While UK officials emphasize the need for a backup system, they have avoided explicitly citing US threats as the reason for their concerns.
Bank of England deputy governor Sarah Breeden recently stated, “In the context of a challenging and changing cyber and operational risk environment, it could provide a degree of extra resilience in the UK payments landscape, as an additional payment rail on the rare occasion of operational disruption to existing rails.”
Joe Garner, former Nationwide CEO and a government adviser on Rachel Reeves’ national payments vision, who led a 2023 independent review on payments, told the Guardian, “Regardless of any political developments, the UK needs to do this. We needed to before, we need to now … I don’t think that’s changed by recent events.”
City funders will be responsible for establishing the legal structure, leadership plans, and future funding models for the new payments alternative, known as DeliveryCo. Meanwhile, the Bank of England will develop infrastructure blueprints to be handed over to the group next year.
The new payments system is expected to be operational by 2030.
Mastercard and Visa have expressed their commitment to the UK and welcomed competition. Visa stated that this includes providing consumers and businesses with “access to innovative, secure digital payments with the highest levels of resilience and reliability. We welcome thThe UK’s progress in account-to-account payments is driven by healthy competition among multiple solutions on a level playing field, which will ultimately provide greater choice, innovation, and economic growth for the country.
Mastercard stated that it has been deeply committed to the UK for many years, offering consumers and businesses a variety of convenient, simple, and secure payment options. The company remains dedicated to advancing commerce both domestically and globally by helping businesses of all sizes expand and meet their customers’ needs.
UK Finance, the trade association providing administrative support to the DeliveryCo project, declined to comment. The Treasury was also approached for comment, while the Bank of England chose not to provide a statement.
Frequently Asked Questions
Of course Here is a list of FAQs about UK bank executives planning an alternative to Visa and Mastercard framed in a natural conversational tone
Beginner General Questions
1 Whats this news about UK banks and VisaMastercard
UK banks are exploring the creation of a new UKbased payment network to compete with Visa and Mastercard which are both American companies
2 Why would they want to create a new system Arent Visa and Mastercard fine
The main driver is risk management Banks are concerned about potential policies from a future Trump administration that could disrupt or make using these USdominated networks more expensive or complicated for international transactions
3 What exactly are they worried about with Trump
Theyre worried about possible sanctions trade tariffs or Americafirst financial policies that could impose extra costs compliance burdens or even restrictions on nonUS companies using American payment infrastructure
4 What would this new system be called
Theres no official name yet Its often referred to in reports as a UK rival or alternative to Visa and Mastercard It would likely be a new brand
5 Would this replace my current Visa or Mastercard debitcredit card
Not immediately and likely not fully Initially it would probably be an additional option Your existing cards would continue to work Longterm banks might issue cards on the new network
Intermediate Practical Questions
6 Whats the main benefit for me as a customer
Potentially lower fees for merchants which could lead to slightly lower prices It would also provide stability and security ensuring the UK has control over a critical piece of its financial infrastructure without relying on foreign companies
7 Would it work abroad
That would be a major goal but its also the biggest challenge Initially it might be UKfocused For it to be successful internationally they would need to convince foreign banks and merchants to accept it which takes time
8 How is this different from just using my banks direct debit or Faster Payments
Direct debits and Faster Payments are for banktobank transfers This new network would be for cardbased pointofsale paymentsboth in physical shops and onlinewhich is what Visa and Mastercard currently dominate
