Security technology company Giesecke+Devrient (G+D) has launched a new token-based payment solution, ‘G+D Filia Unplugged’, enabling secure offline payment transactions.
Filia Unplugged ensures consecutive, secure offline digital payment transactions at any time and place and bridges the gap between seamless online and offline payments without reliable internet connectivity.
“Offline payments are the missing link in the digital payment sphere. With Filia Unplugged, we are helping to bridge this gap,” explained Raoul Herborg, managing director of Central Bank Digital Currency (CBDC) at G+D. “The capability of also paying offline in an existing digital system can enhance financial inclusion and payments resilience, support cash-like features in the digital world, and drive innovative use cases for the tokenised economy.”
In today’s digital-first economy, connectivity pain points can cause serious issues. Power outages, weak internet signals, or telecommunications failures can present serious challenges for digital payment transactions.
They are also especially hurtful in developing countries where the infrastructure for reliable internet access is often insufficient. These outages result in the inability of individuals to access financial services and to perform the services themselves.
By incorporating offline capabilities into digital payments, G+D hopes to help overcome these challenges. G+D Filia Unplugged can be integrated into existing digital payment offerings, including commercial banks’ tokenised deposit systems, instant payment systems, or mobile money services.
Bolstering digital payment connectivity
The new solution boasts three protection layers and cash-like features to provide reliability, security, and trust while functioning independently of internet connectivity.
G+D Filia Unplugged offers digital payments with advantages similar to that of cash, including privacy protection, and high levels of data security. For societies that primarily use cash, this new feature offers significant opportunities. It provides another convenient and secure method for people to make digital transactions without the need for expensive devices like smartphones. A simple smart card can help them start making digital transactions at a low cost.
The offline function also enables use cases such as peer-to-peer payments (P2P) between individuals or payment-to-business payments (P2B). The solution stores monetary tokens on a hardware wallet (such as the SIM card of a smartphone) and only requires two wallets, which consumers can then use without an online connection, for example via NFC.
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