Heads of banks in the United Kingdom are set to hold their first meeting to build a national alternative to Mastercard and Visa, The Guardian reported.
According to the report, the meeting chaired by Barclays UK CEO Vim Maru comes amid growing fears that the Trump administration has power to suddenly turn off US-owned payment systems.
The meeting is set to take place on Thursday will see participation from a group of City funders who will discuss the costs of a new payments company that will keep the UK economy running if such a thing were to occur in the future.
The project, funded by City and backed by the government, has been in discussions for years. However, Donald Trump’s recent threats to NATO allies over Greenland have now created concerns that an over-reliance on US companies can put UK payments, as well as the whole economy, in danger.
Why it matters now
In the UK, about 95% of card payments are made using Mastercard or Visa, both based in the US, as per a report by UK’s Payment Systems Regulator in 2025. Over the year, cash payments have steadily declined in the country.
“If Mastercard and Visa were turned off, it would send us back to the 1950s,” when the whole economy relied on cash, according to the Guardian report quoting an executive familiar with the development.
“Of course, we need a sovereign payments system.”
The disruption, if it happens, has a vast potential to affect the economy.
In a similar case, Russia, where 60% of the payments were done via Visa and Mastercard, faced disruptions when the US imposed sanctions and forced companies to turn off their systems. This left ordinary citizens stranded and without access to funds.
The EU has also raised similar concerns, where politicians have voiced their support to build local networks that will keep working even if a foreign power decided to pull the plug on payments.
Last month, the European parliament’s economic and monetary affairs committee chair Aurore Lalucq has issued a stark warning on the matter that went viral.
“Visa, Mastercard … the urgent issue is our payment system. Trump can cut everything off,” Lalucq said.
“The rest is poetry. I urgently request that the commission organise a European Airbus for payment systems: you cannot say you were not warned.”
What’s the stance of Visa and Mastercard?
As per The Guardian report, both Visa and Mastercard have been onboarded in the group to take the initiative, and they will have both stake and say in the decisions.
Both companies said they were committed to the UK and welcomed competition.
Visa said that included providing individuals and business with “access to innovative, secure digital payments with the highest levels of resilience and reliability. We welcome the industry progress on account-to-account payments in the UK. We believe competition between multiple solutions, supported by a level playing field, will deliver choice, innovation and economic growth in the UK.”
Mastercard said, “Mastercard has been fully invested in the UK for decades, delivering consumers and businesses with a wide range of convenient, simple and secure ways to pay and get paid. We remain committed to drive commerce here at home and across the globe by helping businesses of all sizes grow and meet the needs of their customers.”
Key Takeaways
- Geopolitical tensions can significantly impact economic infrastructures, such as payment systems.
- Developing a sovereign payment system is crucial for national security and economic stability.
- The reliance on foreign payment networks poses risks that can disrupt everyday transactions.