UK Banks Move to Build Domestic Alternative to Visa and Mastercard

Britain's largest banks are meeting this week to advance plans for a domestic payment network that would reduce the UK's dependence on American card networks Visa and Mastercard, according to multiple reports.

The initiative — known internally as "DeliveryCo" — brings together Santander UK, NatWest, Nationwide, Lloyds Banking Group, Barclays, the ATM network group Link, and Coventry Building Society. Barclays CEO Vim Maru will chair the first meeting.

Why now?

Currently, approximately 95% of UK card transactions rely on Mastercard or Visa infrastructure, according to the Payment Systems Regulator. While discussions about a domestic alternative have been ongoing for years, recent geopolitical tensions — including concerns about US government action and the broader deterioration in transatlantic relations — have sharpened the urgency.

As one executive involved in the discussions put it: "If Mastercard and Visa were turned off, it would send us back" to a much earlier era of payments, emphasising the need for a "sovereign payments system."

Visa and Mastercard involvement

Notably, the project is not designed to exclude the US card networks entirely. Both Visa and Mastercard are taking a stake in the initiative and remain committed to their UK presence. The aim is resilience and optionality rather than replacement.

Timeline and backing

The project has support from London's city government and the UK government. The expectation is for the new system to be operational by 2030.

Similar sovereignty-driven efforts are underway across Europe, where officials are increasingly advocating for locally controlled payment networks as geopolitical uncertainty reshapes the financial services landscape.