Finance
Bank of England to consult on alternatives to debit and credit cards
Published by Global Banking & Finance Review®
Posted on February 2, 2026
2 min readLast updated: February 2, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 2, 2026
2 min readLast updated: February 2, 2026
The Bank of England plans a consultation on future payment methods, seeking alternatives to debit and credit cards to enhance electronic payments.
By David Milliken
LONDON, Feb 2 (Reuters) - The Bank of England said on Monday that it will launch a public consultation in the coming months on how consumer payments should work in the future, including making it easier for people to pay electronically without using a debit or credit card.
"We want UK consumers to have the option to pay retailers in-store or online directly out of their bank accounts as a complement to doing so via card schemes," Deputy Governor Sarah Breeden said in a speech on Monday.
Cash is used for less than 10% of payments in Britain while debit and credit cards account for nearly two thirds of transactions, making U.S. firms Mastercard and Visa effective gatekeepers most day-to-day financial activity.
In November, Britain's finance ministry, along with the BoE, set out a strategy for retail payments infrastructure which included encouraging banks and other financial companies jointly to develop a greater range of payment options for consumers.
Breeden said greater competition might lower transaction fees for smaller retailers - which typically pay four times as much as the largest chains - and provide greater resilience against cyber attacks and other risks.
A wider consultation would take place in the spring, and before then the BoE was setting up panels to gather input from groups outside the finance industry as well as within it.
She gave the speech at a conference hosted by financial events company City & Financial Global, and was asked by one audience member if Britain's strategy echoed sovereignty and security concerns elsewhere in Europe.
Breeden did not address these issue explicitly but replied that "if you've got more than one way to pay at point of sale, in the rare event of an operational disruption, you're best able to continue to have economic activity."
The strategy would also look at how to ensure traditional money joined up with any future stablecoins or a possible BoE-run digital currency, as well as reducing the cost of crossborder payments, she said.
Any new payment options were unlikely to fully displace debit and credit cards, as other countries such as Sweden, India and Brazil had multiple options coexist, she added.
(Reporting by David Milliken; editing by Suban Abdulla)
A debit card is a payment card that deducts money directly from a consumer's checking account to pay for a transaction.
A credit card is a plastic card that allows consumers to borrow funds from a pre-approved limit to make purchases or withdraw cash.
Stablecoins are a type of cryptocurrency designed to maintain a stable value by pegging it to a reserve asset, like a currency or commodity.
Electronic payment refers to any payment method that is made electronically rather than with cash or checks, such as credit cards or online transfers.
A public consultation is a process where organizations seek feedback from the public on proposed policies, projects, or changes.
Explore more articles in the Finance category
