Senior UK bank executives will meet this week to begin creating a domestic alternative to Visa and Mastercard.
The initiative aims to reduce reliance on US-owned payment networks.
The meeting will be chaired by Vim Maru of Barclays.
Major lenders including Santander UK, NatWest, Nationwide and Lloyds Banking Group will help fund the project.
The plan, known as DeliveryCo, has government backing.
Concerns have grown over geopolitical tensions and the risk that US-controlled systems could be disrupted.
About 95% of UK card transactions run through Visa and Mastercard networks.
Executives warn that any shutdown would severely disrupt the economy.
The Bank of England will design infrastructure blueprints for the new system.
Officials say the goal is to strengthen resilience rather than target US firms.
The alternative payment network is expected to launch by 2030.
Both Visa and Mastercard said they remain committed to the UK market and welcome competition.
