European and UK Initiatives for Payment System Alternatives to Visa and Mastercard

Concerns over reliance on US-owned payment systems like Visa and Mastercard have prompted discussions in both Europe and the UK regarding the establishment of alternative payment infrastructures. Aurore Lalucq, chair of the European Parliament’s Economic and Monetary Affairs Committee, highlighted the vulnerabilities of European payment systems, particularly in light of geopolitical tensions and the potential for economic coercion. The European Central Bank president, Christine Lagarde, has echoed these sentiments, emphasizing the need for Europe to develop its own payment ecosystem.

EU Observer

In Europe, the conversation has shifted from merely replacing Visa and Mastercard to fostering a competitive ecosystem where various payment systems can coexist. The European Payments Initiative (EPI) and the EuroPA alliance have taken significant steps toward this goal. On February 2, 2026, they signed a memorandum to create a central interoperability hub, targeting cross-border peer-to-peer payments by 2026 and expanding e-commerce and point-of-sale solutions by 2027. This initiative aims to connect existing services like Bizum, Bancomat, and Swish, which already have substantial user bases and transaction volumes.

EU Observer

The European approach emphasizes the importance of maintaining international interoperability, as European consumers and businesses rely on these systems for global transactions. Critics argue that dismissing established networks as mere dependencies overlooks the essential services they provide.

EU Observer

In the UK, bank executives are convening to establish a national alternative to Visa and Mastercard, driven by fears of potential disruptions from US political actions. The initiative, known as DeliveryCo, aims to create a resilient payment system that can operate independently of foreign entities. This project has gained urgency following warnings from Lalucq about the risks associated with over-reliance on US payment systems.

The Guardian

The UK’s Payment Systems Regulator reported that approximately 95% of card transactions in the UK are processed through Visa and Mastercard. The potential impact of losing access to these systems was starkly illustrated by the situation in Russia, where sanctions led to significant disruptions in payment access.

The Guardian

Both Visa and Mastercard have expressed their commitment to the UK market, emphasizing the importance of competition and innovation. Visa stated, “We welcome the industry progress on account-to-account payments in the UK,” while Mastercard reiterated its long-standing investment in the UK payment landscape. The Bank of England's deputy governor, Sarah Breeden, noted that a new payment rail could enhance resilience in the UK payments landscape.

The Guardian

Critics of the European and UK initiatives argue that simply creating alternatives may not address the underlying issues of dependency and competition. They caution against conflating different types of payment systems, advocating for nuanced regulatory approaches that recognize the distinct roles of various players in the payments ecosystem.

EU Observer

As both Europe and the UK move forward with their respective initiatives, the focus will be on developing robust infrastructures that can withstand geopolitical pressures while ensuring consumer access and choice. The anticipated launch of DeliveryCo by 2030 and the ongoing efforts of the EPI and EuroPA will be critical in shaping the future of payment systems in these regions.

EU Observer