Five northern European nations are planning to develop an offline card payment system as a backup in case internet or electrical connections are disrupted. The initiative follows several incidents in recent years where critical undersea cables and other infrastructure were damaged.
Over the next year, Finland, Sweden, Norway, Denmark, and Estonia will begin rolling out a payment system that operates without internet access. According to officials, it will likely involve offline terminals that encrypt and store transaction data until connectivity is restored.
According to Reuters, Sweden’s central bank hopes to establish a system by July 1, 2026, that would allow consumers to make offline card payments for essential goods. The system would be capable of operating during disruptions lasting up to seven days. Central banks in Norway and Denmark are also developing offline electronic payment systems.
Bank of Finland board member Tuomas Valimaki said payments were a potential target because of their critical role in daily life. The Nordic nations have moved almost entirely to electronic transactions. Only 10% of people in Finland use cash as their primary payment method.
The contactless debit card is the most commonly used payment method in the country. A 2023 survey found that Finland was also the only country where fewer than half of respondents reported ever using cash.
Reliance on Undersea Cables
Undersea cables are a key part of the infrastructure around the Baltic Sea, providing a major source of electricity to Estonia and other Baltic states. More than 95% of global internet traffic is carried via undersea cables.
However, they are also vulnerable to damage and difficult to repair. The Baltic Sea power cable running between Finland and Estonia was severed last Christmas, reducing electricity flow to Estonia by almost two-thirds.
Concerns Over the War
The initiative is partly a response to the ongoing war between Russia and Ukraine, which may have been responsible for the damaged cable in December.
“The likelihood of major disruptions has increased because the geopolitical situation has changed worldwide,” Valimaki told Reuters. “There is a war in Europe, and around that war, there is all sorts of hybrid influence and harassment, which may involve disrupting or cutting connections.”
