UK Bank Bosses Plan to Set up Visa and Mastercard Alternative Amid Trump Fears

Why It Matters

The project strengthens the UK’s financial resilience and reduces dependence on foreign payment infrastructure, safeguarding commerce against geopolitical disruptions.

Key Takeaways

• 95% of UK card payments use Visa/Mastercard.
• DeliveryCo aims for launch by 2030.
• City banks and Visa/MC hold stakes in fund.
• Trump’s threats spark sovereign payments push.
• Bank of England to provide infrastructure blueprint.

Pulse Analysis

Geopolitical tension has turned payment infrastructure into a strategic asset, prompting the UK to reconsider its reliance on US‑owned Visa and Mastercard. The 2025 regulator report showing 95% domestic card usage underscores a single‑point‑of‑failure risk, a concern echoed after Russia’s 2022 sanctions forced Visa and Mastercard to suspend services, leaving consumers without access to funds. European policymakers are also vocal about building home‑grown rails, and the recent rhetoric from former US President Donald Trump has accelerated the urgency for a sovereign alternative.

DeliveryCo, the proposed national payments network, will be financed by a coalition of City banks—including Barclays, Santander UK, NatWest, Lloyds, Nationwide, and Coventry Building Society—while Visa and Mastercard retain minority stakes, ensuring collaborative governance. The Bank of England will supply the technical blueprint, focusing on account‑to‑account settlement and real‑time processing, with legal and leadership structures to be defined by the funders this year. A phased rollout is planned, targeting a functional rail by 2030, which will operate alongside existing schemes to provide redundancy without disrupting current consumer experiences.

If successful, the UK could set a benchmark for payment sovereignty, encouraging competition that drives innovation, lower fees, and enhanced security. Regulators anticipate that a domestic rail will improve resilience against cyber‑attacks and political leverage, while offering merchants and consumers more choice. The involvement of incumbent card operators may smooth integration, but the market will watch closely for how the new system balances openness with the need for a secure, independent payment backbone.