Senior UK bank executives will meet this week to begin work on a domestic alternative to Visa and Mastercard.
The project aims to protect the economy if US-owned payment systems are disrupted.
The meeting will be chaired by Vim Maru of Barclays.
City institutions will fund the new company, known as DeliveryCo, with government support.
The Bank of England will design the technical infrastructure.
About 95% of UK card payments run through Visa and Mastercard.
Executives warn that losing those networks would force businesses back to cash.
Sanctions in Russia showed how quickly access to money can disappear when the systems are switched off.
Concerns have grown as geopolitical tensions increase and cash use declines.
Officials say the new platform would add resilience rather than replace existing providers.
Both Visa and Mastercard are involved in the initiative alongside major banks.
The system is expected to launch by 2030.
Supporters argue the UK needs a sovereign payments option regardless of politics.
