Britain’s largest banks have initiated plans to establish a new payment system independent of Visa and Mastercard, a move prompted by concerns over potential interference from the United States. The first meeting to discuss the creation of this national system, involving Barclays, NatWest, Lloyds, Santander, and Nationwide Building Society, is scheduled for this week, with Barclays Chairman Wim Maru leading the discussions.
The initiative stems from anxieties within London regarding the possibility of former President Donald Trump leveraging financial infrastructure to exert pressure on Europe, according to sources familiar with the project. The banks will focus on establishing a legal structure, dubbed DeliveryCo, to oversee the development of a governance model and secure funding for the new payment system.
Currently, Mastercard and Visa dominate the UK’s payment landscape. Data from the Payment Systems Regulator indicates that these two networks processed over 95% of all card transactions in the UK last year. The increasing shift away from cash has amplified their influence, leading to concerns about reliance on American companies for essential financial services. “If Mastercard and Visa were to be switched off, it would take us back to the 1950s. We absolutely need a sovereign payment system,” a project leader stated.
Officials in London maintain that a domestically controlled payment system will enhance resilience, bolster cybersecurity, and provide a crucial backup in the event of disruptions to existing networks. The move reflects a broader effort to secure critical national infrastructure and reduce dependence on foreign entities.
The creation of an alternative payment system is expected to be a complex undertaking, requiring significant investment and coordination among the participating banks. Further meetings are planned to address the technical challenges and regulatory hurdles involved in establishing a new national payment infrastructure.
