Top UK banks to raise £50m to build payments network
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, [...]
The UK's leading banks are set to embark on a £50 million fundraising initiative to establish a domestic payments system alternative to Mastercard and Visa. This effort, spearheaded by the UK Payments Delivery Company (PDC), aligns with the Bank of England's new model and the Treasury's National Payments Vision. The PDC is an industry-led organization collaborating with the Treasury and Bank of England to create the next generation of retail payments infrastructure in the UK.
The initial capital raise will be distributed among 19 major financial institutions, including Barclays, Lloyds, Natwest, HSBC, and international giants like JP Morgan, as well as fintechs Wise and PayPal. To participate, firms must be regulated by the Financial Conduct Authority, Prudential Regulation Authority, or Bank of England, and have a strategic link to the UK retail payments system.
The PDC is currently in the process of identifying a permanent chief executive, with Vim Maru, the chief executive of Barclays UK, serving as the chair designate. The group has already commenced a search for the new leader. The Bank of England's Retail Payments Infrastructure Board is anticipated to release its initial blueprint for the programme in the first quarter of 2027.
The PDC's capital raise has been reported by Sky News, with the PDC's spokesperson stating that the government's National Payments Vision presents a significant opportunity to transform the payments landscape in the UK.
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