UK Banks Launch Rival Payments Infrastructure, Threatening Visa and Mastercard Dominance

Visa and Mastercard's dominance in the UK payments market may be threatened as major UK banks are launching a new domestic payments infrastructure, according to Sky News.

The UK Payments Delivery Company (PDC) is reportedly seeking to raise £50 million from industry participants, including banks, lenders, and payment services providers, through an equity raise on Tuesday. This funding will cover the PDC's incorporation and mobilization stages until 2028.

A search for a chief executive for the new company is already underway, which could signal a significant shift in the UK payments landscape.

The development raises questions about the future of Visa and Mastercard's operations in the UK, where they currently hold significant market share.