Nordic Nations Plan Offline Card Payment Systems Amid Rising Sabotage Threats

Finland, Sweden, Norway, Denmark, and Estonia plan to introduce offline card payments as a safeguard against internet disruptions. This move follows instances of sabotage in the Baltic Sea and increasing geopolitical tensions. Less reliance on U.S. payment systems and development of local alternatives will enhance financial security.

Finland, along with Sweden, Norway, Denmark, and Estonia, is laying the groundwork for offline card payment systems to ensure financial transactions can continue during internet outages, potentially caused by sabotage. Tuomas Valimaki of the Bank of Finland outlined these plans amid heightened geopolitical instability in Europe.

This decision is partly in response to recent, unexplained damages to critical undersea infrastructure in the Baltic Sea, with Western intelligence suggesting Russian involvement, a claim Moscow denies. As digital payments dominate, particularly in Finland where only 10% rely on cash, the urgency for a backup payment system grows.

The systems, planned to roll out by mid-decade, will allow transactions via encrypted card terminals storing data until connectivity is restored. These efforts by Nordic countries also respond to a broader need for payment infrastructure diversification, away from U.S.-based Visa and Mastercard. The European Central Bank's digital euro initiative is a long-term goal, while Finland plans a national instant payment system for added security.

(With inputs from agencies.)