UK bank chiefs are convening to initiate a project aimed at creating a national alternative to Visa and Mastercard, driven by increasing apprehensions regarding Donald Trump’s influence on American-owned payment systems. This meeting, led by Vim Maru, the UK CEO of Barclays, is scheduled for Thursday and will involve key participants from the City who are expected to finance this new payments initiative, which is designed to maintain the stability of the UK economy in the event of any US-related payment disruptions.

The impetus behind this initiative has gained traction following recent threats made by Trump regarding NATO allies and issues related to Greenland, igniting fears that an over-reliance on US payment processors like Mastercard and Visa could jeopardize the UK’s payment infrastructure and economic resilience. A previous report from the UK’s Payment Systems Regulator revealed that approximately 95% of card transactions in the UK rely on these two companies, highlighting the critical need for a domestic alternative as cash usage declines and reliance on electronic payments surges.

If successful, this initiative could pave the way for enhanced financial stability and independence for the UK, allowing it to protect itself from potential external pressures that could adversely affect its economy. Moreover, the government-backed yet City-funded venture points towards a broader trend in financial innovation aimed not only at catering to domestic needs but also stimulating local economic growth by establishing homegrown solutions amidst global uncertainties.