Inside the UK's Bold Plan to Challenge Visa and Mastercard

Jessica Albright · 2026-09-15

When the UK first floated plans for a payments network built for the digital economy, the obvious question was whether it could take on Mastercard and Visa. For years, those two names have dominated the country's card market so completely that challenging them felt almost impossible. But what's actually happening is more surprising than anyone expected. The effort has pulled in Britain's biggest banks, major U.S. lenders like Citi and JPMorgan Chase, and—get this—even Visa and Mastercard themselves have helped lay the groundwork for the new payment rail. So much for a rivalry. This is starting to look like a collaboration. ### A New Player Enters the Field The newly formed UK Payments Delivery Company (PDC) is now looking to raise roughly $63 million (about £50 million). That money should carry the new entity through its incorporation and mobilization stages over the next two years. "It's about modernizing payments infrastructure more than it is a play on financial sovereignty," said Ben Danner, Senior Debit Analyst at Javelin Strategy & Research. "With the card networks and several prominent banks taking an active role in its development, it's not simply about finding alternatives to U.S. organizations but expanding use cases for open banking, pay by bank, commercial payments, and preparing for the future of payments." That quote matters. Because it reframes the whole conversation. This isn't about kicking foreign players out. It's about building something better for everyone. ### Why This Is a Landmark Strategy Payment modernization has become a top priority for UK regulators in recent years. The PDC represents a landmark in Britain's broader financial services strategy. Earlier efforts included the Bank of England extending operating hours for UK payment systems to support faster payments. The UK government has also spotlighted digital assets technologies as a potential driver for payments modernization. They've even considered a mandate that would require the BoE to support innovation in payment systems and digital currencies. In short, they're not just thinking about today. They're trying to get ahead of where money is heading. ### The Obstacle Nobody Can Ignore Many of these objectives were first set forth in the UK's National Payments Vision paper two years ago, including the creation of the PDC. Known as DeliveryCo in its early stages, the PDC was initially viewed as part of the broader global trend toward payments sovereignty. However, like many efforts in other regions, the PDC is still years away from widescale implementation. Meanwhile, Visa and Mastercard currently handle roughly 95% of all card transactions in the UK. These cards power most of the mobile wallet transactions that have become a mainstay for UK shoppers. That's a significant obstacle for any nascent payments system. But here's the thing—there will likely still be plenty of use cases for the PDC once it goes live. The goal isn't to replace Visa and Mastercard overnight. It's to give people and businesses more options. And in payments, options are everything.