Following a nationwide payment system outage, the National Bank in Denmark is urging all residents to keep at least 250 kroner (approx. $36) in cash per household member to prepare for future disruptions.
National Bank in Denmark Emphasizes Cash Reserves After System Failure
In response to a three-hour payment outage earlier this summer, the National Bank in Denmark, has issued updated public guidelines aimed at increasing financial resilience in times of crisis. The new advice includes a specific recommendation for every Danish household to maintain a minimum of 250 kroner (around $36) in cash per person, to be used during electronic payment system outages. It shows why planning is important.
The move follows a major failure of the Nets payment processing platform in July, which effectively froze most card transactions across Denmark. For nearly three hours, consumers were unable to pay by card in physical stores, creating long lines and confusion at points of sale nationwide. The event showed why cash can be useful.
The incident highlighted vulnerabilities in the country’s heavily digital payment infrastructure. In 2023, nearly 90% of all retail purchases in Denmark were made using digital cards or mobile payment apps like MobilePay.
Preparing for the Unexpected
While Denmark has long been praised for its advanced digital economy, the National bank in Denmark now urges consumers not to rely solely on these platforms. The updated advice puts a concrete figure on prior general recommendations to keep cash on hand, aiming to increase preparedness for system failures, power outages, or digital infrastructure cyberattacks.
The central bank stresses that the 250-kroner-per-person guideline is a suggested minimum. Households are encouraged to assess their own needs and consider keeping additional cash, particularly in smaller denominations, to facilitate easier transactions and give change in case store systems are down.
This recommendation comes on the heels of widespread blackouts earlier this year in Spain, Portugal, and parts of France, which similarly disrupted digital transactions and emphasized the importance of offline payment mechanisms. According to Nationalbank projections, if a similar event occurred in Denmark, as many as 5.8 million residents could experience temporary inaccessibility to digital payments.
Promoting Offline Payment Readiness
Besides cash, the National Bank in Denmark encourages all individuals to diversify their payment tools. This includes keeping at least two different physical debit or credit cards from separate payment systems, such as Visa and Mastercard – as well as mobile payment apps like MobilePay that allow for bank transfers.
Offline card payment capabilities are also being promoted. These are payments that can be completed even when a store’s connection to the payment system is disrupted, provided the card terminal and payment card support this functionality. However, most offline transactions require users to enter their PIN codes, making it essential for consumers to remember or securely store this information.
To support this shift, Danish authorities are working closely with retail chains, pharmacies, and payment processor firms to ensure that offline transaction technology is available and properly implemented. By the end of 2024, the goal is for all major stores and pharmacies in Denmark to accept offline payments with all types of physical cards, along with Apple Pay and Google Pay.
Retailers Expected to Adapt
Stores and businesses are expected to play a key role in improving nationwide payment resilience. The National bank in Denmark has called upon the retail sector including restaurants, supermarkets, and small shops, to train their staff on how to activate and manage offline payment systems. This would ensure that business can continue even if card networks temporarily fail.
Industry groups, such as the Danish Chamber of Commerce, have started working with banks and software providers to roll out technical updates and contingency training across the country’s retail network.
Strengthening Digital Infrastructure
While the focus on cash and offline solutions may appear to be a step backward for one of Europe’s most digitalized economies, the central bank views it as a complement to ongoing investments in cybersecurity and system reliability. According to the National Bank in Denmark, more than 1.3 billion transactions are handled each year through Denmark’s primary payment network, making even minor interruptions potentially costly.
Ultimately, the updated recommendations reflect a growing global awareness that digital convenience must be balanced with resilience. By taking proactive steps now, the Nationalbank hopes to ensure that residents remain financially functional during societal disruptions, be they technical failures, cyberattacks, or natural disasters.
