Senior UK banking executives will meet this week to begin creating a national alternative to Visa and Mastercard.
The project aims to protect the economy if access to US-owned payment systems is disrupted.
The talks will be chaired by Vim Maru of Barclays.
City investors will fund the new company, while the government supports the plan.
The system, known as DeliveryCo, could be operational by 2030.
About 95% of UK card payments currently run through Visa and Mastercard.
Executives warn that losing those networks would force businesses back to a cash-based economy.
Sanctions that cut Russia off from the two firms showed how severe the impact can be.
The initiative has been discussed for years but gained urgency after geopolitical tensions.
European policymakers have issued similar warnings about dependence on foreign payment providers.
Despite the push for a domestic backup, Visa and Mastercard are involved in the project.
Major banks including Lloyds Banking Group, NatWest and Santander UK are also participating.
Bank of England officials say an extra payment rail would improve resilience against cyber or operational failures.
Supporters argue the move is necessary regardless of political developments.
