UK Banks Move to Build Domestic Alternative to Visa and Mastercard Amid Trump-Era Fears

Senior executives from the United Kingdom’s biggest banks are convening this week to take concrete steps toward creating a national payments network that could operate independently of the US-dominated card processing giants Visa and Mastercard — a move driven by growing concerns over geopolitical risk and over-reliance on foreign-controlled infrastructure. Nearly 95 % of UK card transactions currently flow through Visa or Mastercard rails, according to the UK Payment Systems Regulator, highlighting just how entrenched the US networks have become in the British financial system.

The meeting — spearheaded by Vim Maru, CEO of Barclays UK — will bring together City of London funders and major financial institutions including Lloyds Banking Group, NatWest, Santander UK, Nationwide and the ATM network Link to discuss the creation of a new payment entity, provisionally dubbed DeliveryCo, funded by the private sector but backed by the UK government and supported by the Bank of England.

Although originally under discussion for several years, the initiative has gained urgency following recent statements by US political figures and concerns that reliance on US-controlled systems could leave the UK vulnerable to external political decisions that might disrupt access to critical payment infrastructure. The proposed sovereign payment network could be operational by 2030 and designed to provide resilience and choice alongside existing global schemes, rather than displacing them entirely.

Key Highlights

• Bank-led initiative: UK bank executives are meeting to progress a sovereign alternative to Visa and Mastercard.
• Geopolitical concerns: The effort is partly motivated by fears that US political actions — particularly those associated with Donald Trump’s rhetoric and policies — could threaten access to US-owned payment networks.
• Market dominance: Around 95 % of UK card transactions currently run on Visa and Mastercard rails.
• Funding and support: A City-funded initiative backed by the UK government and the Bank of England aims to reduce dependency on external systems and improve resilience.
• Participants: Major banks including Lloyds, NatWest, Santander UK and Nationwide are involved, alongside the ATM network Link.
• Timeline: Discussions aim toward delivery of a new payments infrastructure by around 2030.

Why It Matters

1. Heavy Dependence on US Card Networks

Visa and Mastercard together process the vast majority of card payments in the UK, meaning that the country has become highly reliant on foreign-owned networks that sit outside domestic regulatory control. This dependence carries operational and strategic risk, especially in periods of international political strain or sanctions regimes, where access to these networks can be compromised or restricted.

2. Resilience and Sovereignty

The proposed domestic payments system is being framed as a resilience measure aimed at ensuring that the UK economy can continue to function even in the face of disruptive global events. Officials stress that the system would act as an additional payment rail, complementing rather than replacing existing networks, and enhancing overall stability while offering more UK control over critical financial infrastructure.

3. Broader International Trend

The UK’s move echoes similar discussions in the European Union and other major economies, where policymakers have expressed concerns about over-reliance on US-based infrastructure — a theme that has also surfaced around initiatives like the European Payments Initiative (EPI) and the launch of regional alternatives to global card networks.

Market and Regulatory Context

Visa and Mastercard’s dominance in global payment processing has historically made it difficult for alternative payment networks to scale. However, the UK government’s National Payments Vision, a strategy designed to modernise payment infrastructure, has placed emphasis on greater competition, resilience and innovation in the retail payments space — with the current discussions forming part of that long-term agenda.

Both Visa and Mastercard are reportedly supportive of competition and have been invited to participate in the initiative, signalling a collaborative rather than adversarial dynamic. Nonetheless, the drive for a localised payment network reflects a broader strategic imperative to reduce systemic risks and enhance sovereignty over everyday financial transactions in an era of shifting global geopolitics.

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