UK banks are moving to create a national alternative to Visa and Mastercard to safeguard the country’s payment system amid concerns over potential US political risks. The first official meeting is scheduled for Thursday, led by Barclays’ UK chief executive Vim Maru, bringing together City funders to plan the initiative. The initiative, known as DeliveryCo, is funded by major banks but backed by the UK government. It has been in discussion for years, yet recent concerns over former President Donald Trump’s threats to NATO allies have added urgency to reducing reliance on US-owned payment systems. Currently, around 95% of UK card transactions are processed through Visa and Mastercard, according to a 2025 report by the UK Payment Systems Regulator. As cash use declines, the UK economy becomes increasingly dependent on these foreign-owned networks. “If Mastercard and Visa were turned off, it would send us back to the 1950s, when cash was king,” said an executive involved in the project. “Of course, we need a sovereign payments system.” The potential risk is not hypothetical. In Russia, US sanctions forced Visa and Mastercard to halt operations, leaving citizens unable to access funds or complete transactions. Similar concerns have prompted the European Union to explore homegrown payment networks that foreign powers cannot control. Aurore Lalucq, chair of the European Parliament’s economic and monetary affairs committee, warned, “Visa, Mastercard … Trump can cut everything off. We urgently need our own system.” The UK approach is more collaborative. Visa and Mastercard are participating in DeliveryCo, alongside major banks including Santander UK, NatWest, Nationwide, Lloyds Banking Group, and Coventry Building Society, as well as the ATM network body Link. This gives the companies a stake in the project while allowing other funders to shape its structure and governance. The Bank of England has emphasized the need for extra resilience in the UK’s payments landscape. Deputy Governor Sarah Breeden noted that DeliveryCo would provide an “additional payment rail on the rare occasion of operational disruption to existing rails.” Joe Garner, former Nationwide chief executive and government adviser, stressed the long-term necessity of the project. “Regardless of political developments, the UK needs this system. We needed it before, and we need it now,” he said. DeliveryCo will focus on designing the legal framework, leadership plans, and funding models, while the Bank of England will develop infrastructure blueprints for the new payment system, expected to be operational by 2030. Both Visa and Mastercard have publicly welcomed the initiative. Visa highlighted its commitment to “innovative, secure digital payments with the highest levels of resilience and reliability” and praised the development of account-to-account payment competition. Mastercard also reaffirmed its investment in the UK, stating it aims to provide businesses and consumers with simple and secure ways to pay and get paid while supporting commerce at home and abroad. The trade association UK Finance, which provides administrative support to DeliveryCo, declined to comment. The plan reflects a growing global awareness of economic vulnerabilities linked to foreign-controlled payment networks. By establishing a UK-owned alternative, banks hope to ensure that the economy continues to function even in scenarios where access to Visa and Mastercard could be disrupted. The initiative also aligns with broader international trends, as countries and regions seek payment systems they control independently of external political pressures. DeliveryCo’s creation represents a strategic step for UK financial security. By combining government backing, private investment, and expertise from existing payment networks, the system aims to be both resilient and competitive. Observers say it may serve as a model for other countries looking to reduce reliance on foreign-owned financial infrastructure while maintaining innovation in the payments sector.