A man examined the contents of his wallet in Helsinki in December 2022. The Bank of Finland is recommending that consumers have enough cash on hand for food, fuel and medication for a couple of days to protect themselves against disruptions in electronic payment systems. (Jussi Nukari – Lehtikuva)
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PURSES AND WALLETS have become a bit of a rarity due to the popularity of electronic payments in Finland, reports Helsingin Sanomat. The latest statistics indicate that no more than six per cent of the public use cash in their day-to-day lives.
The complete digitalisation of payments is not without its risks, however, reminds an expert at the Bank of Finland.
“It’d be good if people had some cash at home – at least enough to buy the most important food items, medications and fuel for a couple of days,” Päivi Heikkinen, the director of payment systems at the Bank of Finland, said to Helsingin Sanomat on Friday.
A disruption in card payment systems could complicate the lives of not only people who rely exclusively on cards but also people who rely on mobile payment services, given their card-based nature.
The central bank drew attention to the need for a co-called home economic kit around 18 months ago, when Finland was joining Nato. Heikkinen explained that it became apparent at the time that the country could be subjected to various types of hybrid influence and cyberattacks.
“There’s no acute threat,” she added.
Heikkinen said consumers should also consider having cards from two different banks to make sure a disruption in the payment system of one does not prevent them from making payments altogether. Yet another vulnerability stems from the widespread use of online bank credentials to log in to many services that are critical for daily life.
“Also their functioning depends on the bank’s systems. That’s why it’d be good to have a mobile identity tool especially if you need verification also at work,” she noted.
Heikkinen added that banks and retailers are primarily well prepared to fend off various cyberattacks, as evidenced by the fact that consumers have been largely unaffected despite the relatively high frequency of attacks.
In Finland, payments are extremely reliant on card payment systems such as Visa and Mastercard, said Heikkinen. The two American payment systems are fundamentally responsible also for processing payments made with the most popular mobile payment systems, including Apple Pay, Google Pay and, often, Mobilepay.
It would be preferable if mobile payment services that directly utilise bank accounts are launched alongside card-based services, according to her. “In Sweden and Norway, the most popular mobile payment systems use accounts directly.”
The Payments Council, a national co-operation body set up under the Bank of Finland, is presently drafting rules that would enable the launch of instant account-based payments also in the country. Nordea and OP Financial Group in December revealed that they are jointly developing a new payment platform.
Aleksi Teivainen – HT
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Source: www.helsinkitimes.fi
