UK banks are planning to create a national alternative to Visa and Mastercard, fearing potential disruptions from US-owned payment systems under Donald Trump's leadership. The initiative, known as DeliveryCo, aims to ensure the UK economy remains operational even if US payment systems are compromised. This move comes as a response to Trump's threats against NATO allies and his potential influence over US companies like Visa and Mastercard. According to the UK's Payment Systems Regulator, 95% of UK card transactions rely on these US-owned systems. The concern is that a disruption could severely impact the UK economy, similar to the situation in Russia, where US sanctions left people without access to funds. The UK's stance is less aggressive, with Visa and Mastercard participating in the initiative, but the underlying fear remains. The Bank of England's deputy governor, Sarah Breeden, emphasizes the potential benefits of a backup payment system in a changing cyber and operational risk environment. Former Nationwide chief executive Joe Garner supports the initiative, arguing that the UK needs a sovereign payments system regardless of political developments. City funders will oversee the legal structure and leadership of DeliveryCo, while the Bank of England will develop infrastructure blueprints. The new payment system is expected to be operational by 2030, ensuring the UK's financial resilience and sovereignty.
