Nordic nations, Estonia develop offline card payment systems

Finland, Sweden, Norway, Denmark, and Estonia are preparing to roll out offline card payment systems to ensure access to essential financial services during internet disruptions, Bank of Finland board member Tuomas Valimaki announced on May 8.

The move comes after the Baltic Sea region faced several instances of unexplained damage to critical undersea infrastructure in recent years. Western intelligence agencies have blamed Russia for acts of sabotage, allegations the Kremlin denies, Caliber.Az reports via foreign media. 

"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 said. 

With only 10 per cent of Finns using cash as their primary payment method, Finland remains heavily reliant on digital card transactions. Such payments depend on functioning international data links, which are vulnerable during cyberattacks or infrastructure failures.

To mitigate these risks, the Nordic countries are advancing plans to enable offline card payments using payment terminals capable of encrypting and storing transaction data until connectivity is restored. Välimäki said offline payment systems are being developed across the region, including in Sweden, Norway, Denmark, and Estonia.

Sweden's central bank said it aims to implement a system by July 1, 2026, that would allow citizens to make offline payments for essential purchases during outages lasting up to seven days. Norway and Denmark have already launched their own versions of offline payment systems and continue to improve them. Estonia’s central bank has not yet commented.

Last year, Nordic banking giant Nordea faced a prolonged denial-of-service attack that intermittently blocked customer access to online accounts, underscoring the urgency of enhancing payment resilience.

Välimäki also highlighted the risk of overdependence on foreign card infrastructure, particularly on US-based companies Visa and Mastercard.

"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," he said, calling for diversification.

Finland is expected to launch its own offline payment system for consumers next year, while a national instant payment platform is planned within a few years. Additionally, the country will introduce a reserve bank account system, allowing citizens access to their savings even if their primary bank becomes inoperable.

Meanwhile, the European Central Bank is exploring a digital euro that could offer instant payments across the eurozone. However, Välimäki noted the project could take years to materialise due to the need for political agreement among member states.

By Sabina Mammadli