Core Viewpoint - The Bank of England is initiating a public consultation to explore alternative retail payment methods that bypass traditional debit and credit card networks, aiming to enhance consumer choice and competition in the payment landscape [1][2]. Group 1: Consultation and Strategy - The Bank of England plans to launch a public consultation in the spring to gather evidence from stakeholders regarding alternative payment methods [1]. - In November, the finance ministry and the Bank of England outlined a retail payments infrastructure strategy to encourage the development of diverse payment options by banks and financial firms [3]. Group 2: Current Payment Landscape - Cash transactions account for less than 10% of payments in the UK, while debit and credit cards constitute nearly two-thirds of all transactions, highlighting the dominance of payment giants like Mastercard and Visa [2]. - Smaller retailers face payment processing fees that are approximately four times higher than those of larger chains, indicating a need for increased competition to reduce costs [3]. Group 3: Future Considerations - The strategy will also evaluate how existing payment formats may interact with future stablecoins or a potential Bank of England digital currency, as well as ways to lower cross-border payment costs [4]. - Deputy Governor Sarah Breeden emphasized that while new payment options are being explored, they are not expected to completely replace card payments, as seen in markets like Sweden, India, and Brazil where multiple payment methods coexist [5].