Senior UK bank executives will meet this week to begin creating a domestic payments network to rival Visa and Mastercard.
The project aims to protect the economy if access to US-owned systems is disrupted.
The talks will be chaired by Vim Maru of Barclays and funded by major City institutions.
The government supports the plan, while the Bank of England is preparing the technical framework.
About 95% of UK card payments currently run through Visa and Mastercard.
Executives warn that losing those networks would force a return to a cash-based economy.
Sanctions that cut Russia off from the systems highlighted the potential risk.
The new company, known as DeliveryCo, will design the legal structure, leadership and funding model.
The system could be operational by 2030.
UK officials describe the move as a resilience measure rather than a political response.
Visa and Mastercard are involved in the initiative and say they welcome competition.
Banks including Lloyds Banking Group, NatWest and Santander UK are expected to participate.
The plan reflects wider European efforts to reduce reliance on foreign payment infrastructure.
