Senior UK banking figures will meet this week to begin creating a national card payments system.
The project aims to reduce reliance on US networks such as Visa and Mastercard.
The talks will be chaired by Vim Maru of Barclays.
City investors will fund the new company, known as DeliveryCo, with government support.
The Bank of England will design the technical infrastructure.
About 95% of UK card payments currently run through the two US firms.
Executives warn that losing access would severely disrupt the economy as cash use declines.
Concerns have grown over geopolitical tensions and the risk of foreign control over critical systems.
The plan has existed for years but has gained urgency recently.
Russia’s experience after sanctions showed how payment shutdowns can affect daily life.
European politicians have also called for locally owned alternatives.
UK officials present the move as a resilience measure rather than a political response.
Visa and Mastercard are involved in the project alongside major lenders including Lloyds Banking Group, NatWest and Santander UK.
Both companies say they welcome competition and remain committed to the UK market.
The new system could be operational by 2030.
