Senior UK bank executives will meet this week to begin creating a national card payments system.
The project aims to reduce reliance on US networks such as Visa and Mastercard.
The meeting will be chaired by Vim Maru of Barclays.
City institutions will fund the new company, known as DeliveryCo, with government support.
The goal is to keep payments running if existing systems are disrupted.
About 95% of UK card transactions currently use Visa or Mastercard.
Executives warn that losing access would force the economy back toward cash-based payments.
Sanctions on Russia, which cut off those networks, highlighted the potential impact.
The Bank of England is developing the technical framework for the system.
Officials describe it as a resilience measure rather than a political response.
The new payment rail could be operational by 2030.
Major banks and payment firms, including Santander UK, NatWest and Lloyds Banking Group, are involved.
Visa and Mastercard are also participating and say they welcome competition.
Supporters argue the UK needs a sovereign backup regardless of geopolitics.
The initiative reflects wider European concerns about dependence on foreign payment infrastructure.
