UK banks launch fundraising for new payments utility to rival Visa and Mastercard

The UK Payments Delivery Company is launching an equity raise this week, seeking about 50 million pounds from banks, lenders and payment providers to fund the buildout of a new national payments utility, Sky News reported on September 15, citing people familiar with the plans. The newly formed entity has emerged from the government’s National Payments Vision, published in late 2024.

The initial raise will fund the PDC’s incorporation and mobilisation phases through 2028, according to City AM. To participate, firms must be authorised or overseen by the Financial Conduct Authority, the Prudential Regulation Authority or the Bank of England for banking or payment activities, hold a strategic connection to UK retail payments, and be willing to consider an equity stake in the company.

Nineteen companies have backed the PDC’s early work, including Britain’s four largest high-street banks alongside Citi, JPMorgan Chase, Nationwide, PayPal and Wise, according to Sky News. Notably, Visa and Mastercard have themselves participated in the foundational work, despite reporting that has framed the project as a potential domestic rival to the two card networks. Barclays UK chief executive Vim Maru is chairing the group on a designate basis, and a search for a permanent chief executive is under way.

Visa and Mastercard shares edged lower after the report, paring earlier gains, according to Investing.com. “The government’s National Payments Vision has set an ambitious direction for the future of payments, and the UK Payments Delivery Company will play a key role in turning that ambition into reality,” a PDC spokesperson said.

The PDC is expected to work closely with the Bank of England’s Retail Payments Infrastructure Board, which is due to hand the delivery company a formal blueprint for the programme in the first quarter of 2027. Britain’s payments infrastructure has drawn criticism as outdated, and a government-commissioned report last year said the country needed a digital alternative to the two dominant card networks, following years of complaints from retailers about rising scheme and processing fees.

Previous European attempts to build homegrown card rivals have struggled, with banks generally reluctant to commit the scale of investment required.