Link: https://www.telegraph.co.uk/busines...a-rival-fears-trump-could-pull-plug-payments/
Credit: Michael Bow, Chief City Correspondent, The Daily Telegraph
Archive: https://archive.ph/iyutP
Visa and Mastercard handle about 95pc of all card transactions in the UK. Credit: Toby Melville/Reuters
Britain is accelerating plans to launch an alternative to Mastercard and Visa amid growing fears Donald Trump could pull the plug on the global payments system.
The UK’s largest banks are plotting a new British platform to handle the 50 billion payments made every year after concerns were raised about Mr Trump’s ability to switch off the current system.
Lenders including Barclays, Natwest, Lloyds, Santander and Nationwide are set to meet on Thursday for the first time to develop a blueprint for the scheme, the Guardian reported. The forum is chaired by Vim Maru, head of Barclays UK.
The new system will be used to keep the economy afloat if the President decided to interfere with the payments network amid fears over his attacks on the UK and Europe.
Banks and regulators are also hoping the scheme will cut Britain’s reliance on US financial infrastructure, which underpins much of the world’s payment schemes.
“If Mastercard and Visa were turned off, it would send us back to the 1950s,” one executive told the Guardian, referring to the period when cash was used for the majority of payments.
The President’s strident tone on defence matters as well as his threats over Greenland have prompted the UK and EU to step up plans to lessen their reliance on US systems and infrastructure.
This includes accelerating plans for a rival payments system, which is dominated by US cards giants Visa and Mastercard. Both handle about 95pc of all card transactions in the UK.
Mr Trump has shown a willingness to use an array of financial weapons to achieve his aims, raising fears that the payments system could be weaponised in the future.
In January, he threatened the UK and other EU nations with 10pc tariffs if they did not back his claim to Greenland. Although he backtracked on the plan, it has raised alarm from policymakers who fear the President could throttle payments to achieve his aim.
The Treasury originally unveiled plans for the “next generation of UK retail payments infrastructure” last year, with the Bank of England establishing the Retail Payments Infrastructure Board taskforce to develop the system.
Britain’s banks are also working on blueprints for implementing the Visa and Mastercard rival, which is called DeliveryCo. UK Finance, the industry trade body, is orchestrating the plans.
A Visa spokesman said: “Visa remains committed to providing UK consumers and businesses with access to innovative, secure digital payments with the highest levels of resilience and reliability.
“We welcome the industry progress on account-to-account payments in the UK.
“We believe competition between multiple solutions, supported by a level playing field, will deliver choice, innovation and economic growth in the UK.”
Mastercard said: “The payment industry has never been more competitive.
“Mastercard has been fully invested in the UK for decades, delivering consumers and businesses with a wide range of convenient, simple and secure ways to pay and get paid.
“We remain committed to drive commerce here at home and across the globe by helping businesses of all sizes grow and meet the needs of their customers.”
Credit: Michael Bow, Chief City Correspondent, The Daily Telegraph
Archive: https://archive.ph/iyutP
Visa and Mastercard handle about 95pc of all card transactions in the UK. Credit: Toby Melville/Reuters
Britain is accelerating plans to launch an alternative to Mastercard and Visa amid growing fears Donald Trump could pull the plug on the global payments system.
The UK’s largest banks are plotting a new British platform to handle the 50 billion payments made every year after concerns were raised about Mr Trump’s ability to switch off the current system.
Lenders including Barclays, Natwest, Lloyds, Santander and Nationwide are set to meet on Thursday for the first time to develop a blueprint for the scheme, the Guardian reported. The forum is chaired by Vim Maru, head of Barclays UK.
The new system will be used to keep the economy afloat if the President decided to interfere with the payments network amid fears over his attacks on the UK and Europe.
Banks and regulators are also hoping the scheme will cut Britain’s reliance on US financial infrastructure, which underpins much of the world’s payment schemes.
“If Mastercard and Visa were turned off, it would send us back to the 1950s,” one executive told the Guardian, referring to the period when cash was used for the majority of payments.
The President’s strident tone on defence matters as well as his threats over Greenland have prompted the UK and EU to step up plans to lessen their reliance on US systems and infrastructure.
This includes accelerating plans for a rival payments system, which is dominated by US cards giants Visa and Mastercard. Both handle about 95pc of all card transactions in the UK.
Mr Trump has shown a willingness to use an array of financial weapons to achieve his aims, raising fears that the payments system could be weaponised in the future.
In January, he threatened the UK and other EU nations with 10pc tariffs if they did not back his claim to Greenland. Although he backtracked on the plan, it has raised alarm from policymakers who fear the President could throttle payments to achieve his aim.
The Treasury originally unveiled plans for the “next generation of UK retail payments infrastructure” last year, with the Bank of England establishing the Retail Payments Infrastructure Board taskforce to develop the system.
Britain’s banks are also working on blueprints for implementing the Visa and Mastercard rival, which is called DeliveryCo. UK Finance, the industry trade body, is orchestrating the plans.
A Visa spokesman said: “Visa remains committed to providing UK consumers and businesses with access to innovative, secure digital payments with the highest levels of resilience and reliability.
“We welcome the industry progress on account-to-account payments in the UK.
“We believe competition between multiple solutions, supported by a level playing field, will deliver choice, innovation and economic growth in the UK.”
Mastercard said: “The payment industry has never been more competitive.
“Mastercard has been fully invested in the UK for decades, delivering consumers and businesses with a wide range of convenient, simple and secure ways to pay and get paid.
“We remain committed to drive commerce here at home and across the globe by helping businesses of all sizes grow and meet the needs of their customers.”
