Senior UK banking figures will meet this week to begin creating a national card payments system.
The project aims to reduce reliance on US-owned networks during geopolitical tensions.
The meeting will be chaired by Vim Maru of Barclays and funded by major City institutions.
The new company, known as DeliveryCo, would act as a backup if existing systems failed.
About 95% of UK card transactions currently run through Visa and Mastercard.
Executives warn that losing access would severely disrupt the economy as cash use declines.
Sanctions in Russia, where the two networks were shut down, highlighted the risk.
The initiative has been discussed for years but gained urgency amid security concerns and changing global politics.
UK officials frame the move as a resilience measure rather than a direct response to US policy.
The Bank of England will design the infrastructure, while banks will set up the legal and funding structure.
The system could be operational by 2030.
Visa and Mastercard support the project and will participate alongside lenders including Santander UK, NatWest, Nationwide and Lloyds.
Industry figures say the goal is greater competition and a sovereign safety net for payments.
