By James Simons-
Senior executives at Britain’s biggest lenders are drawing up contingency plans for a domestic card payments network that could rival Visa and Mastercard, amid growing unease that a future administration led by Donald Trump could disrupt transatlantic financial infrastructure.
According to industry sources familiar with the discussions, a group of UK bank bosses have held preliminary talks about whether Britain should develop its own card processing scheme to reduce reliance on the two American payments giants, which together dominate the UK’s debit and credit card market.
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The conversations, described as exploratory but increasingly serious, reflect broader concerns within the City of London about geopolitical risk, regulatory divergence and the possibility that US political decisions could spill over into global financial networks.
While no formal proposal has yet been submitted to regulators, senior figures at several high street banks are understood to be examining the technical, financial and legal feasibility of creating a UK-based alternative that could process domestic transactions independently of US-headquartered firms.
The UK payments market is heavily reliant on Visa and Mastercard, which together process the vast majority of debit and credit card transactions in Britain. According to the UK’s Payment Systems Regulator, these two networks handle around 95 % of card payments, underscoring their dominant role in domestic commerce.
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Both companies are publicly listed in the United States and operate extensive global networks that underpin everyday consumer spending, from supermarket purchases to online subscriptions.
Bank executives privately say that the issue is not an imminent shutdown of services, but rather long-term strategic vulnerability. If political tensions between Washington and London were to escalate under a second Trump presidency, they argue, the UK could find itself exposed to decisions made beyond its control.
During his previous term in office, Donald Trump pursued an “America First” agenda that reshaped trade relationships and introduced tariffs on allies as well as rivals.
While there is no suggestion that he has proposed interfering in global payments systems, some UK banking leaders believe recent geopolitical shocks including sanctions regimes and financial weaponization demonstrate how swiftly cross-border financial flows can become politicised.
A senior banking source said: “The question is not whether Visa or Mastercard would voluntarily cut off the UK. It is about resilience. What happens if US policy shifts in a way that affects how these networks operate internationally?”
The UK government has previously examined competition concerns in the card payments market. The Payment Systems Regulator has criticised the lack of effective rivalry between Visa and Mastercard, pointing to rising fees for merchants in recent years. Some policymakers argue that a domestic network could introduce price competition as well as bolster sovereignty.
Britain once had its own card scheme in the form of Switch, later rebranded as Maestro under Mastercard’s ownership. However, over time, consolidation and globalisation have left Visa and Mastercard as the dominant processors.
Supporters of a new UK network note that other countries operate national schemes alongside global players. France has Cartes Bancaires, while China has UnionPay. India’s RuPay, backed by the National Payments Corporation of India, has expanded rapidly in recent years. These models, bankers say, demonstrate that alternatives can coexist with international brands.
Yet replicating such systems would be a formidable undertaking. Visa and Mastercard’s infrastructure is deeply embedded in banks’ technology stacks, merchant terminals and e-commerce platforms. Building a new network would require significant capital investment, regulatory approval and industry-wide coordination.
Industry analysts caution that launching a credible alternative would take years and cost hundreds of millions of pounds. The network would need to handle authorisation, clearing and settlement of transactions, as well as fraud detection and cybersecurity protections comparable to those offered by established players.
Industry analysts caution that there is no quick solution to replicating the services of Visa and Mastercard. Both companies have built extensive global networks over decades, deeply integrated with banks, merchants, and digital platforms, making it difficult for any new entrant to match their scale, reliability, or infrastructure.
The UK’s financial watchdogs would also play a central role. The Financial Conduct Authority and the Bank of England would need to assess systemic risk, operational resilience and consumer protection implications.
Some observers suggest the initiative could align with broader efforts to strengthen Britain’s financial independence after Brexit. Since leaving the European Union, the UK has sought to assert greater control over regulatory frameworks in areas ranging from financial services to digital markets.
However, sceptics warn that a domestically focused card scheme could struggle to achieve scale. Consumers expect their cards to work seamlessly abroad and online. Any UK-only alternative would likely need partnerships with international networks to ensure global acceptance potentially limiting its independence.
Another challenge is merchant adoption. Retailers would need incentives to accept a new card brand, particularly if it required upgrades to payment terminals or software systems. Fee structures would have to be competitive to persuade businesses to support a newcomer.
Nevertheless, advocates argue that technological change could lower barriers to entry. The rise of digital wallets and account-to-account payment systems has already begun to diversify the payments landscape. Open banking initiatives have enabled direct transfers that bypass traditional card rails altogether.
In recent years, the UK has seen rapid growth in fintech innovation. Firms such as Revolut and Monzo have reshaped consumer expectations around digital banking. Proponents of a domestic card network believe Britain’s strong fintech ecosystem could provide the expertise needed to develop a modern, flexible alternative.
There are also strategic considerations. Global tensions over technology supply chains, data sovereignty and financial sanctions have heightened awareness of interdependence in critical infrastructure. Payments systems, once viewed as neutral plumbing, are now recognised as potential levers of state power.
The discussions remain at an early stage. Bank executives are said to be commissioning feasibility studies and seeking informal feedback from regulators. The Treasury has not publicly endorsed the idea, and officials are understood to be cautious about intervening in a market that continues to function smoothly for consumers.
Visa and Mastercard declined to comment directly on the reports but have previously emphasised their commitment to operating as neutral global networks. Both companies have longstanding relationships with UK banks and process billions of transactions annually in Britain.
A spokesperson for Visa has previously said that the company “operates in more than 200 countries and territories, connecting consumers, businesses, banks and governments to fast, secure and reliable electronic payments.” Mastercard has similarly highlighted its role in supporting economic growth and financial inclusion worldwide.
Despite such assurances, the fact that senior UK banking figures are contemplating an alternative underscores the shifting geopolitical climate. Financial infrastructure, once taken for granted, is increasingly viewed through the lens of national security and resilience.
Some analysts believe the mere exploration of a rival network could strengthen the bargaining position of UK banks in negotiations over fees and contractual terms with existing providers. Even if a domestic scheme never fully materialises, the threat of competition may influence market dynamics.
Ultimately, the question facing Britain’s financial sector is how to balance efficiency and global integration with autonomy and risk management. Visa and Mastercard’s scale offers undeniable advantages, but dependence on foreign-owned infrastructure carries its own uncertainties.
While political rhetoric intensifies ahead of the next US presidential election, UK bank bosses appear determined to ensure that, whatever the outcome, Britain’s payments system remains secure and underpinned by contingency planning.
Whether that results in a fully fledged British card network or simply renewed scrutiny of existing arrangements the debate signals a broader reassessment of how financial sovereignty fits into an era of geopolitical unpredictability.
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