Finland, Sweden, Norway, Denmark, and Estonia rolling out offline card payment systems to provide a back-up if internet connections are lost, including due to sabotage, Bank of Finland board member Tuomas Valimaki said on Wednesday.
The plans come after the Baltic Sea region has suffered several instances of unexplained damage to critical undersea infrastructure in recent years, and as Western intelligence services have accused Russia of committing various acts of sabotage - a charge the Kremlin rejects.
“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 said payments were a potential target because of their critical role in everyday life.
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The European Central Bank is planning to introduce a digital euro, which would enable instant payments, but Valimaki said it would take years to establish the system even if it secured the political backing it needs from all euro zone countries.
In another push to protect financial security, Finland is also introducing a national system of reserve bank accounts. Under the system, the National Financial Stability Authority would be able to give Finns access to their savings even if their bank was unable to operate, Valimaki said.
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Yep this should work SEPA-wide, In Germany POS terminals occasionally fall back to the old way of doing things (print out a long-ass reciept, sign it), the card then is just a way to transfer bank details, the actual authorisation is the signature, can be done offline, harkens back to the Eurocheque system. Basically the same thing as, I might be giving away my age, writing your bank details on a postcard and signing it, “yes I want to subscribe to your newspaper”, just that you don’t have to write out your account number.
Sounds like it’s vulnerable to fraud and abuse but if your bank authorised you to debit other accounts like that and complaints or chargebacks pile up you’re in all kinds of trouble: The bank knows where you live. Chargebacks also cost an arm and a leg, and if a customer charges back illegitimately you might have to go to court to recover it.