HELSINKI, Finland: In response to rising geopolitical risks, Finland, Sweden, Norway, Denmark, and Estonia are preparing to roll out offline card payment systems to ensure transactions can continue if internet connections are disrupted, a senior Finnish central bank official said this week.

Bank of Finland board member Tuomas Valimaki cited recent damage to critical undersea infrastructure in the Baltic Sea and fears of sabotage as driving factors behind the initiative. Western intelligence agencies have accused Russia of targeting such infrastructure, a claim the Kremlin denies.

"The likelihood of major disruptions has increased because the geopolitical situation has changed worldwide," Valimaki told Reuters, referencing Russia's invasion of Ukraine. "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 noted that card payments, vital for everyday transactions, could be a primary target. In Finland, where just 10 percent of people primarily use cash, dependence on card payments is particularly high.

To mitigate this risk, the Nordic and Baltic countries are exploring solutions that enable offline payments, where terminals encrypt and store transaction data until internet service is restored. Norway and Denmark have already launched such systems, while Sweden's central bank aims to introduce offline card payments for essential purchases by July 1, 2026.

Finland is also planning to roll out offline payment capabilities next year and develop a national instant payment system to reduce reliance on U.S.-based Visa and Mastercard infrastructure.

"We may feel like we have options, to pay with debit or credit or with Apple Pay, but all of those function via the Visa and Mastercard infrastructure," Valimaki said, urging the diversification of payment networks.

Last year, Nordic bank Nordea experienced a prolonged denial-of-service attack, underlining the vulnerability of digital financial systems. To further enhance financial security, Finland is also establishing a national system of reserve bank accounts to guarantee access to savings even if a commercial bank fails.

As part of broader financial resilience planning, NATO's Christian-Marc Lilflander called for finance ministers to take a more active role in security discussions to address potential threats to the financial services sector.

The European Central Bank is separately working on a digital euro for instant payments, but Valimaki noted it would take years to implement.