Senior UK banking figures will meet this week to begin work on a domestic card payments network.
The project aims to reduce reliance on US-owned systems run by Visa and Mastercard.
The talks will be chaired by Vim Maru of Barclays and involve major lenders and payment firms.
City investors will fund the new company, known as DeliveryCo, with government support.
The Bank of England is preparing the technical blueprint.
Concern about geopolitical risk has accelerated the long-running plan.
About 95% of UK card transactions currently depend on the two US networks.
Executives warn that losing them would severely disrupt the economy as cash use declines.
The initiative also mirrors debates in the EU about sovereign payment systems.
UK officials frame the project as a resilience measure rather than a political move.
Visa and Mastercard are involved in the discussions and say they welcome competition.
The new payment rail could be operational by 2030 if the project proceeds as planned.
