UK Banks Unite to Challenge Visa, Mastercard's Grip on British Card Transactions

The UK's biggest banks and payment firms have joined forces to create a domestic payments network, posing a challenge to Visa and Mastercard's dominance in British card transactions.

Nineteen of the country's largest lenders, including Barclays, Lloyds, NatWest, and HSBC, have formed the UK Payments Delivery Company to build the next generation of payments infrastructure.

The company is seeking £50 million in equity from banks and lenders, as well as payment service providers, to fund its incorporation and mobilization through 2028.

Visa and Mastercard's shares edged lower after news of the project broke, with investors reacting to the possibility that UK banks may have a credible bargaining tool against the two US card networks.