Countries in the Nordic region are planning offline backups to digital payments in the event of losing internet connectivity.
According to a Reuters report, Finland, Sweden, Norway, Denmark and Estonia have made plans following unexplained damage being caused to cables in the Baltic sea, with Russia accused of sabotage by Western governments.
“The likelihood of major disruptions has increased because the geopolitical situation has changed worldwide,” Bank of Finland board member Tuomas 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.”
He said payments were a potential target because of their critical role in everyday life. “Since card payments require functioning international data links, Finland must be prepared for interruptions,” said Valimaki. “Many other countries are of course in the same situation.”
He said Norway, Sweden, Denmark and Estonia were also planning to introduce offline card payments, and possibly other nations, too.
Countries in the Nordic region are leading the way in digital payments, with cash usage across the region falling to below 10%, and digital mobile payment alternatives becoming increasingly popular with consumers.
Valimaki told Reuters that offline payments can involve using terminals that encrypt and store transaction data until internet connections are restored.
The UK faces similar risks. Recent bank outages at banks, including one for three days at Barclays Bank, demonstrated the chaos when banking services are inaccessible, something that could be used by foreign power during political tensions.
Data received from banks by MPs on the Treasury Committee revealed at least 158 banking IT failures between January 2023 and February 2025, equating to over 800 hours of service unavailability.
Customers of Barclays Bank were left unable to access web app and online banking, make payments to and from their accounts, or access customer services for three days in the wake of a significant IT outage struck in January.
Banks are also marching on with their plans to close high street bank branches to save money, claiming that people are moving to online banking. This increases the reliance on an internet connection, which if lost would leave no access to banking services.
Research by analytics software company SAS compared the number of branches in 2020 and 2023 in UK constituencies, areas represented by an MP. The study found that 80 localities have lost 80% of their bank branches over the past three years, and the average UK constituency has lost over half its bank branches in the past three years.
Parliamentary Treasury Committee chair Meg Hillier MP recently said: “When a bank’s IT system goes down, it can be a real problem for our constituents, who were relying on accessing certain services so they can buy food or pay bills.”
She said the closure of high street branches in favour of online banking means bank crashes hit customers harder. “The rapidly declining number of high street bank branches makes the impact of IT outages even more painful,” said Hillier. “That’s why I’ve decided to write to some of our biggest banks and building societies.”