British Banks Consider Creating a National Alternative to Visa and Mastercard

SadaNews - Major British bank leaders are preparing to hold their first meeting to establish a national alternative to the American payment networks "Visa" and "Mastercard", in a move reflecting increasing concerns over the near-total reliance on U.S.-owned systems for managing payments within the United Kingdom.

The meeting, chaired by the CEO of UK operations at Barclays, Vim Maro, will bring together funders from "the City" who will bear the costs of setting up a new payment company aimed at ensuring the continued functioning of the British economy in the event that U.S. networks are disrupted for any reason.

Data from the "Payment Systems Regulator" indicates that about 95 percent of card transactions in the UK go through "Visa" and "Mastercard", a dominance that becomes increasingly sensitive amid the ongoing decline in cash usage.

Geopolitical Concerns
Although the idea of creating a domestic payment system has been on the table for years, recent geopolitical tensions and statements from U.S. President Donald Trump regarding NATO allies have reignited fears over the potential use of financial infrastructure as a political pressure tool.

One executive familiar with the project told The Guardian that a disruption of "Visa" or "Mastercard" would "take us back to the 1950s", when the economy relied entirely on cash, adding, "We need a sovereign payment system".

The experience of Russia following U.S. sanctions, which led to the suspension of the companies' services there, has heightened these concerns, as consumers faced difficulties accessing their funds and completing purchases.

Government Support... and American Participation

The new initiative, known as Delivery Co, is supported by the government, while funders from "the City" are establishing the legal structure, leadership plans, and financing models.

The Bank of England (the British central bank) is expected to provide technical infrastructure plans next year, with the system set to be ready by 2030.

Notably, "Visa" and "Mastercard" are among the funders, alongside major financial institutions such as "Standard UK", "NatWest", "Nationwide", and "Lloyds Banking", as well as the cash machine network "Link" and the Coventry Building Society.

Bank of England Deputy Governor Sarah Breeden confirmed that having an "additional payment pathway" could enhance the resilience of the financial system against cyber and operational risks, without directly mentioning political threats.

In contrast, "Visa" and "Mastercard" welcomed the competition, affirming their commitment to the UK market and their readiness to support secure and flexible digital payment solutions.

Between Sovereignty and Integration

Although London adopts a less harsh tone compared to some voices in the European Union, where officials have called for the establishment of a "European Airbus for payments", the British move reflects a broader trend to rethink dependence on cross-border financial infrastructure.

The challenge remains in achieving a balance between enhancing financial sovereignty and maintaining integration with the global payment system, at a time when geopolitical considerations have become a significant factor in major economic decisions.