Why the UK is Building a Competitor to Visa and Mastercard
In recent days, a piece of news has emerged with the potential to reshape the global payments landscape: UK banks are taking formal steps to build their own alternative to Visa and Mastercard networks.
This is not a minor project or an isolated idea: it reflects something deeper about how payment infrastructure is evolving and why more countries and regions are thinking about sovereignty and resilience.
What’s Happening in the UK?
A group of executives from the UK’s major banks met this week to advance the creation of a national payment system that could serve as an alternative to Visa and Mastercard, the two networks that currently handle around 95% of card transactions in the country.This project, called DeliveryCo, aims primarily to ensure that the UK can continue processing electronic payments even if the existing networks were to fail.
- Participation from banks such as Barclays, NatWest, Lloyds, Santander UK, and Nationwide.
- Technical support from authorities like the Bank of England.
- A target launch around 2030.
The idea is not to “replace” Visa or Mastercard, but to provide an additional system capable of keeping the economy running even in case of disruptions.
Why Now? A Mix of Political Tension and Systemic Risk
A significant driver behind this initiative may surprise those outside the sector: geopolitical concerns.
In the background of these discussions is the fear that political decisions could have knock-on effects on payment infrastructure.
A frequently cited example is what happened in Russia after international sanctions: Visa and Mastercard were taken offline, leaving many citizens without access to basic electronic payments.
While the UK is not in that situation, such cases spark a legitimate debate about dependence on networks controlled from abroad and the risks this entails in an increasingly digital and cashless economy.Is This Competitive or Strategic?
An important aspect of this move is that it is not just about commercial competition, it's also about strategic resilience.
Visa and Mastercard have stated that they remain committed to the UK market and welcome any competitive initiatives that encourage options, innovation, and growth.Beyond the market‑competition perspective, this project aligns with a broader vision of payment systems as critical infrastructure without which the modern economy simply cannot function.
This Is Not Just the UK: Similar Trends in Europe
The UK is not the only territory where these debates are taking place:
In the European Union, projects like Wero (a mobile payment solution developed by the European Payments Initiative) aim to unify and strengthen payment options across the continent.
Additionally, the EU is advancing the concept of a digital euro, a digital currency issued by the European Central Bank with both online and offline capabilities, designed to provide additional resilience in case private infrastructure fails.
These initiatives share a common goal: to give Europe more control and autonomy over how payments move within its economic space.
What Could This Mean for the Future?
- More countries and regions may explore local or regional alternatives.
- Public‑private collaborations could increase to manage systemic risks.
- Competition between networks could lead to better conditions for businesses and users.
The proposal of a national competitor to Visa and Mastercard in the UK represents more than a change in payment mechanisms: it is a response to how the global context is influencing technological and financial decisions that affect millions of transactions every day.
