Nordic Nations Build Offline Card Payment Systems Amid Security Fears

In an era where tapping a card or waving a phone has all but replaced the use of cash, the Nordic countries are taking a hard look at what might happen if the digital world suddenly goes dark. Finland, Sweden, Norway, Denmark, and Estonia are now working together on an ambitious plan to introduce offline card payment systems — a safeguard against potential disruptions to internet connections that could paralyze daily commerce.

Bank of Finland board member Tuomas Valimaki announced this week that the project is gaining momentum, spurred by growing geopolitical risks and recent incidents in the Baltic Sea region. Over the past few years, unexplained damage to undersea cables and pipelines has heightened fears that critical infrastructure could be vulnerable to sabotage. Western intelligence agencies have repeatedly accused Russia of hybrid warfare tactics, including acts of sabotage — accusations the Kremlin continues to deny. Valimaki put it plainly: “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 are all sorts of hybrid influence and harassment, which may involve disrupting or cutting connections.”

These concerns are not abstract for Finland, where central bank data shows that only 10% of people use cash as their primary payment method. That leaves the country — and much of the Nordic region — highly dependent on card-based transactions that rely on functioning international data links. “Since card payments require functioning international data links, Finland must be prepared for interruptions,” Valimaki said. “Many other countries are, of course, in the same situation.”

The offline payment plan is still in the works, but the basic concept involves terminals that can encrypt and store transaction data locally when the internet is unavailable. Once connections are restored, the stored data can be processed, ensuring that people can continue to buy essential goods even during disruptions. Sweden’s central bank told Reuters that it aims to have a system up and running by July 1, 2026, capable of supporting offline payments for up to seven days. Finland expects to roll out consumer-facing offline payment capabilities next year, while also introducing a national system for instant payments in the coming years.

This initiative comes against the backdrop of rising concerns over Europe’s reliance on U.S.-based payment giants Visa and Mastercard. Valimaki pointed out that even though consumers might feel they have choices — debit cards, credit cards, Apple Pay — all of these systems ultimately run on the same underlying infrastructure. “We may feel like we have options, but all of those function via the Visa and Mastercard infrastructure,” he said, highlighting the need for more diversification.

Recent cyberattacks have only reinforced these concerns. Last year, the Nordic region’s largest bank, Nordea, faced an unprecedented denial-of-service campaign that lasted weeks and, at times, blocked customers from accessing their online accounts. Such events underline how dependent modern societies have become on uninterrupted digital services — and how exposed they are when those services are disrupted.

Looking beyond the immediate efforts, the European Central Bank is developing a digital euro that would allow for instant payments across the eurozone. However, Valimaki cautioned that even if the digital euro gets the necessary political backing, it will take years before such a system is fully established. Meanwhile, Finland is also creating a national system of reserve bank accounts, designed to ensure that citizens can access their savings even if their commercial bank’s systems go down.

As the Nordic nations press ahead with these measures, they are setting an example of how advanced economies can proactively bolster their financial resilience. In a world where the threats of cyberattacks, sabotage, and technical failures are becoming part of the geopolitical landscape, the ability to keep the financial lifeblood of society flowing, even when the internet is cut, may soon become a defining feature of national security.