While Visa and Mastercard have been thrust into the spotlight, those close to the talks describe a technical modernisation effort rather than a plan to displace the card networks
Senior payments stakeholders have pushed back on claims the UK is preparing to replace Visa and Mastercard, saying the country’s latest infrastructure initiative is focused on long-term resilience and modernisation rather than ejecting global card networks.
A report by The Guardian this week suggested executives were preparing to create a national alternative to the two US payment giants amid fears President Donald Trump could “turn off” access to their networks.
However, a source familiar with the discussions tells Payment Expert that such characterisations significantly overstate the scope of the meeting, and that the legal, regulatory and commercial realities governing global card schemes make any hypothetical “switch-off” scenario far more complex than implied.
What is actually happening?
On 19 February, a meeting chaired by Barclay’s Chief Executive Vim Maru will bring together financial investors to move forward with the next phase of the UK’s payments upgrade under the government-backed National Payments Vision. The initiative was launched in 2024 by Chancellor Rachel Reeves, with the goal of modernising the UK’s payments system and improving resilience.
The group will focus on setting up the governance structure, leadership team, and long-term funding approach for the project, currently referred to as DeliveryCo. Technical design work is expected to be finalised next year, with any new payment rail unlikely to launch before 2030.
Industry participants, including Visa and Mastercard, are involved in the discussions. According to the source familiar with the matter, both companies are contributing expertise in areas such as cybersecurity and fraud prevention.
Why are Visa and Mastercard in focus?
The dependence on Visa and Mastercard networks has seen European policymakers raise concerns about relying on US-owned networks, which have led to the launch of the European Payments Initiative and potential alternatives to card payments like Wero. The bloc has also not shied away from using recent US political tensions, including disputes over Greenland and NATO, to push consumers to adopt alternatives.
Despite the UK also having its own problems around dependency on the two card networks – around 95% of UK card transactions run on Visa and Mastercard rails, according to the Payment Systems Regulator (PSR) – policymakers have always said their motivations are to provide options rather than replace incumbent networks.
Breno Oliveira, Chief Product Officer at payabl., tows a similar line in comments sent to Payment Expert, explaining while tensions may have led to new questions about the dependency on US networks for Europe’s card payments, “it is important to recognise that Europe’s push for greater independence around payments pre-dates these more recent issues.”
“The continent has a strong track record of building its own world-class infrastructure, including initiatives like SEPA and, more recently, Wero, a homegrown digital wallet enabling instant account-to-account payments across markets. payabl. is one of the first licensed members and a direct participant in Wero, and we have seen first-hand the appetite for innovative, locally driven solutions that complement existing systems,” Oliveira adds.
“New innovation and competition must always be welcomed, but the priority should remain collaboration and interoperability rather than fragmentation. Strengthening Europe’s capabilities while maintaining strong international partnerships will ensure businesses and consumers continue to benefit from greater speed, security and choice in how they pay.”
Is Open banking the way forward?
Account-to-account (A2A) payments are often seen as the UK’s strongest alternative to card schemes, but industry figures say they are not yet a direct replacement.
“Open banking is often cited as the UK’s natural fallback, but it is not yet a like-for-like substitute for cards,” Chris Jones, Managing Director at PSE Consulting explains, pointing to maturing consumer trust, evolving protection frameworks and limited coverage across key use cases such as cross-border payments.
There are also commercial challenges, with many open banking providers still experiencing profitability pressures, which leads to questions about whether the sector could operate as core national infrastructure at scale.
Consumer awareness is another problem yet to be fully solved. London-based fintech Yaspa found last year that 55% of UK adults were familiar with the term “Pay by Bank”, though more recent research suggests recognition may be falling.
However, merchant adoption is increasing, with Amazon’s decision to add Pay by Bank at checkout in the UK showing major retailers see value in offering alternative payment options.
In comments sent to Payment Expert, Visa said: “Visa remains committed to providing UK consumer and businesses 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.”
