Giesecke+Devrient (G+D), a Munich-based SecurityTech company specializing in the production of banknotes, securities and smart cards, has introduced a new digital payment solution, G+D Filia Unplugged, which enables digital payments without an internet connection. The solution uses a tokenized system and can be integrated into existing digital payment offers.
As is noted in a company release, G+D Filia Unplugged was presented at the Point Zero Forum in Zurich, which took place from July 1 to 3, 2024.
Connectivity issues can be a barrier to making digital payments, especially in rural areas. The lack of connection can be caused by a power outage, lack of a strong Internet signal, or telecommunications failures. The effectiveness of online payment systems is fundamentally related to the availability of a stable Internet connection. Disruptions leave people unable to access and use financial services themselves. G+D believes that incorporating offline capabilities into digital payments can overcome these challenges.
The solution has three levels of protection and cash-like features to ensure reliability, security and trust, functioning independently of an internet connection. The offline feature enables use cases such as peer-to-peer (P2P) and business-to-business (P2B) payments.
The technology works similarly to many streaming services that allow users to download audio or video files that can then be played offline. The solution stores monetary tokens on a hardware wallet (for example, on a SIM card). A transaction requires only two wallets that can interact, for example via NFC.
G+D Filia Unplugged can be integrated into existing digital payment offerings, including tokenized deposit systems of commercial banks, instant payment systems and mobile money services. Such solutions, it said, could promote financial inclusion for the 1.4 billion people who do not have bank accounts.
