UK Banks Meet to Explore Creating Sovereign Payments Network to Rival Visa and Mastercard Amid Geopolitical Concerns in London

British banking executives are convening this week to discuss building a national payments network that could operate independently of global giants Visa and Mastercard.

The move is fueled by rising geopolitical concerns, particularly fears that Donald Trump could use his influence to restrict international payment systems for political leverage.

The meeting, chaired by Vim Maru, brings together senior figures from the City of London to explore funding a domestic alternative capable of handling millions of transactions across the UK.

Why the Urgency

Visa and Mastercard currently dominate the UK payments ecosystem, with most card transactions processed through their systems.

The Payment Systems Regulator confirms that nearly every major bank, including Santander, NatWest, Nationwide, Lloyds, and Coventry Building Society, relies on these platforms, as does the ATM network Link.

Concerns have grown after past experiences in Russia, where sanctions left millions without access to cash due to reliance on US-based systems.

One banking executive told the Guardian:

“If Mastercard and Visa were turned off, it would send us back to the 1950s. Of course, we need a sovereign payments system.”

Mastercard and the National Payments Vision

A spokesperson for Mastercard stressed that the current meeting is part of a long-planned initiative, tied to the UK Government’s National Payments Vision launched in 2024.

“Both the meeting itself and its timing sit squarely within this longstanding and orderly programme.

The payment industry has never been more competitive, providing consumers and businesses with a wide range of ways to pay and get paid,” the spokesperson said.

While Mastercard and Visa remain central to UK payments, the initiative reflects growing interest in sovereign, City-backed infrastructure that would safeguard the country against external political pressures.

Europe’s Parallel Push

The UK is not alone in exploring independence from US payment networks.

European leaders have been actively pushing for locally owned alternatives.

Aurore Lalucq recently warned that dependence on US firms is risky, saying:

“Visa, Mastercard… the urgent issue is our payment system. Trump can cut everything off.”

ECB President Christine Lagarde echoed the sentiment, calling for Europe to urgently develop its own infrastructure.

Earlier this month, the European Payments Initiative and EuroPA Alliance signed an agreement to build a pan-European network covering 130 million users, centered on the digital wallet Wero.

What’s Next?

UK banks are expected to finalize proposals for a sovereign payments network over the coming months, with discussions likely focusing on funding, governance, and technology integration.

Regulators may also weigh in to ensure smooth adoption across banks and payment providers.

European developments suggest a trend toward regional self-sufficiency in payments, meaning both the UK and EU could eventually operate independent systems that protect against geopolitical shocks and strengthen financial resilience.

Summary

British banks, led by Barclays’ Vim Maru, are meeting this week to explore a domestic payments network independent of Visa and Mastercard, amid fears of political interference from the US.

The move aligns with global trends, as Europe also develops a pan-European network with Wero, aiming to secure sovereign control over payments and protect users from potential international disruptions.