Britain’s biggest banks are set to kick off a fundraising campaign that will pave the way for a domestic payments alternative to Mastercard and Visa.

The UK Payments Delivery Company (PDC) is launching an equity capital raise as part of a new model from the Bank of England, aligning with the Treasury’s National Payments Vision, a person familiar with the plans said. The PDC is an industry-owned organisation that is partnering and the Treasury and Bank of England to usher in the next generation UK retail payments infrastructure.

The initial raise will target a combined £50m from participating companies before the UK incorporates as a fully operational, shareholder-backed company, the person said. The cash is expected to finance the project until 2028.

Some 19 of the country’s biggest financial services groups united to support the early setup of the PDC in 2025, including the big four banks Barclays, Lloyds, Natwest and HSBC.

International giants such as JP Morgan will also join the cohort as well as fintechs Wise and Paypal.

To join the group, firms must be authorised, regulated or overseen by the Financial Conduct Authority, Prudential Regulation Authority or Bank of England for banking or payment activities. They also must hold a strategic connection to the UK retail payments system and consider an equity investment in the PDC. 

Mastercard and Visa have also participated in the foundation work of the PDC.

New payments unit on search for top boss

Vim Maru, the chief executive of Barclays UK, is leading the group as chair designate. The group has already kicked off a search for a permanent chief executive. The PDC’s capital raise was first reported by Sky News.

The Bank of England’s Retail Payments Infrastructure Board (RPIB) is expected to deliver its first formal blueprint for the programme in the first quarter of 2027.

A spokesperson for the Payments Delivery Company said: “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. 

“The work will shape the next generation of payments infrastructure and deliver a system that is resilient, innovative and ready for the future.”

The Treasury revealed last month it would begin tracking the central bank’s progress on payments and digital currencies by introducing a new secondary objective of innovation.

City AM previously reported industry leaders believed the Treasury had grown frustrated with a lack of progress on payments innovation.