Finland, Sweden, Norway, Denmark, and Estonia are rolling out offline card payment systems as a backup in the event of internet outages, including those caused by sabotage, according to Tuomas Valimaki, a board member of the Bank of Finland.

This initiative follows several instances of unexplained damage to critical undersea infrastructure in the Baltic Sea region in recent years. Additionally, Western intelligence agencies have accused Russia of carrying out acts of sabotage, although the Kremlin has denied these claims, Reuters reported.

“The likelihood of major disruptions has increased because the geopolitical situation has changed worldwide. 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,”

Valimaki told Reuters, referring to Russia’s invasion of Ukraine.

He highlighted that payments could be a potential target due to their vital role in everyday life.

In Finland, where only 10% of the population uses cash as their primary payment method, dependence on card payments is high, with central bank data showing similar trends across the region.

“Since card payments require functioning international data links, Finland must be prepared for interruptions. Many other countries are of course in the same situation,”

Valimaki added.

Norway, Sweden, Denmark, and Estonia are also planning to introduce offline card payments, with other nations potentially following suit.

Valimaki noted that although the plans are still in development, offline payments could involve using terminals that encrypt and store transaction data until an internet connection is restored.

Sweden’s central bank aims to establish a system by 1 July 2026, allowing Swedes to make offline card payments for essential goods during disruptions lasting up to seven days.

Central banks in Norway and Denmark have already launched offline electronic payment systems, which they are continuing to develop.

Estonia’s central bank has not yet responded to requests for comment.

Last year, Nordea, the Nordic region’s largest bank, was targeted by an unprecedented denial-of-service attack that lasted for weeks and occasionally prevented customers from accessing their accounts online.

Valimaki also stated that Europe should reduce its dependence on card payments, which are currently dominated by US companies Visa and Mastercard.

“We cannot rule out that one night someone on Truth Social comes up with using payments as a pressure tactic,”

he warned, referring to the social media platform where U.S. President Donald Trump often shares his ideas.

To provide an alternative, Finland plans to introduce a national system for instant payments in the coming years, while offline payments will be available to consumers next year.

“We may feel like we have options, to pay with debit or credit or with Apple Pay for example, but all of those function via the Visa and Mastercard infrastructure,”

Valimaki explained, calling for diversification in the payment system.

Featured image credit: edited from freepik