Senior UK bank executives will meet this week to begin work on a domestic 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, with government support.
The initiative, known as DeliveryCo, could be operational by 2030.
About 95% of UK card payments currently run through Visa and Mastercard.
Executives fear a shutdown of US systems could severely disrupt the economy.
The concern has grown amid geopolitical tensions and declining cash use.
The Bank of England is designing the technical infrastructure.
Major lenders including Lloyds Banking Group, NatWest and Santander UK are involved.
Both Visa and Mastercard are also participating in the discussions.
Officials describe the plan as a resilience measure rather than a political move.
Supporters say the UK needs a sovereign backup system regardless of global tensions.
