Senior figures from Barclays and other major lenders will meet this week to begin work on a UK-based card payments system.
The project aims to reduce reliance on Visa and Mastercard, which handle about 95% of UK card transactions.
The initiative, known as DeliveryCo, has been discussed for years but gained urgency amid geopolitical tensions and concerns that US networks could be disrupted.
City institutions will fund the company, while the Bank of England will design the core infrastructure.
The system could be operational by 2030.
Executives warn that losing access to US payment rails would severely damage the cash-light UK economy.
Similar disruptions in Russia after sanctions highlighted the risks of dependence on foreign networks.
The project is framed publicly as a resilience measure rather than a political response.
Deputy governor Sarah Breeden said an additional payment rail would strengthen security against cyber and operational failures.
Visa and Mastercard are involved in the discussions and say they welcome competition.
Major banks including Lloyds Banking Group, NatWest, Nationwide and Santander UK are expected to help shape the new system.
