UK banks to meet over possible Visa, MasterCard rival
UK Banks Convene to Discuss Potential Rival to Visa and MasterCard
British banking executives met Thursday in London to explore the establishment of a national payment system intended to challenge the dominance of American firms Visa and MasterCard. This initiative comes amid concerns about economic sovereignty linked to recent U.S. policies.
The meeting follows the UK Treasury’s announcement of plans aimed at modernizing the payments infrastructure in response to global calls for enhanced economic security. Funded by the financial sector, this initiative is being overseen by the Bank of England.
Thursday’s session marked the first gathering organized by “DeliveryCo,” a newly formed entity led by Vim Maru, chief executive of Barclays UK, focusing on the development of this alternative payment system. Sources indicate that representatives from Visa and MasterCard are also expected to attend the conference.
UK Finance, the trade association providing administrative support to DeliveryCo, declined to comment on the meeting, as did Barclays, the Treasury, and the Bank of England.
The proposed system would enable British consumers to make direct transfers from their bank accounts to sellers, bypassing traditional card networks. According to the Payment Systems Regulator, Visa and MasterCard currently handle over 95 percent of card payments in the UK.
Bank of England policymaker Sarah Breeden highlighted the potential benefits of an account-to-account payment system, stating it could enhance the resilience of the UK’s payment landscape and lower costs for businesses, ultimately benefiting consumers with reduced prices.
The move toward creating a national payment system reflects growing calls within the UK to decrease dependency on U.S. financial institutions, particularly against a backdrop of heightened transatlantic tensions. This trend is echoed in mainland Europe, where the European Central Bank has been developing a digital euro since 2020 as a means to lessen reliance on international card networks.
In addition to a national payments system, the Bank of England is also considering the introduction of a digital currency, commonly referred to as “Britcoin.”
