City-backed initiative aims to reduce reliance on US payment giants; India’s RuPay seen as example of domestic resilience
Senior executives from leading UK banks are moving forward with plans to create a domestic alternative to Visa and Mastercard, amid rising geopolitical uncertainty and concerns about the country’s heavy dependence on US-owned payment networks, according to a report by The Guardian.
The initiative is expected to be discussed at a meeting this week chaired by Barclays UK chief executive Vim Maru. Major financial institutions are set to explore the creation of a new payments entity designed to ensure continuity of transactions if existing international card networks face disruption.
The project, which has been under consideration for several years, has gained renewed urgency amid heightened global political tensions. According to The Guardian, recent developments—including assertive US foreign policy rhetoric—have sharpened anxieties about the potential vulnerability of critical financial infrastructure controlled by overseas corporations.
The UK’s reliance on Visa and Mastercard is significant. Data cited in the report show that the vast majority of card transactions in the country are processed through the two networks. With cash usage steadily declining, any interruption to these systems could have widespread economic consequences.
Industry participants involved in the discussions reportedly view the effort as a matter of financial resilience rather than immediate political confrontation. The new venture, referred to as DeliveryCo, would be backed by city institutions and supported by the government, with the Bank of England expected to help design the underlying infrastructure framework. The system is tentatively projected to be operational by the end of the decade.
The move comes as other regions also reassess payment sovereignty. In the European Union, policymakers have publicly argued for strengthening homegrown alternatives to global networks. Russia’s experience in 2022—when international card operators suspended services following sanctions—is frequently cited as an example of the risks associated with overdependence on foreign-controlled financial rails.
Visa and Mastercard, meanwhile, have indicated their continued commitment to the UK market and signalled openness to competition within a resilient payments ecosystem.
India’s RuPay offers a precedent
The UK’s deliberations mirror India’s earlier efforts to establish greater autonomy in digital payments infrastructure.
RuPay, launched by the National Payments Corporation of India (NPCI), was conceived as a domestic card network to reduce reliance on international players, lower transaction costs and ensure that payment processing data remained within national jurisdiction. Over time, RuPay has become a central pillar of India’s financial inclusion drive and is widely used across public and private sector banks.
Although its global footprint remains smaller than that of Visa and Mastercard, RuPay has expanded through international partnerships and operates alongside India’s Unified Payments Interface (UPI), which has transformed digital transactions domestically.
As countries increasingly view payments infrastructure through the lens of national security and economic sovereignty, India’s experience demonstrates how a domestically anchored network can coexist with global systems while enhancing strategic resilience.
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