G+D Rolls Out a Token-Based System for Secure Offline Payments
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Germany-based Giesecke+Devrient (G+D) recently revealed a new token-based system that will allow customers to make secure offline payments.
Introducing G+D Filia Unplugged
The new token-based payment solution is known as G+D Filia Unplugged, and it will enable consecutive, secure offline payment transactions. Customers will now be able to make offline payments at any time and at any place, keeping all the advantages that come with cash, such as high levels of data security and privacy protection.
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According to G+D, the new tech is very easy to integrate into existing digital payment offerings. That includes commercial banks’ tokenized deposit systems, mobile money services, or instant payment systems. In other words, the system was developed to be easily included for simple and fast adoption.
Filia Unplugged also adds a new level of resilience to digital payments, which can be hit by connectivity issues due to power outages, telecom failures, or weak internet signals. Furthermore, the company claims that the new system could help drive financial inclusion for almost 1.4 billion people around the world who are considered unbanked.
Filia Unplugged can offer a new payment method for those who struggle financially due to the inability to access regular banking services simply by allowing them to make digital transactions without having to rely on smartphones and other expensive devices.
How Does It Work?
The new service functions by enabling P2B and P2P payments. G+D also explained that central banks are working on making offline a critical part of the digital currency work. In other words, the goal is to reduce the digital currency payment systems’ reliance on the Internet, which could be one of the major steps in driving the adoption of digital assets in everyday use.
The technology was designed to store monetary tokens on hardware wallets, such as the SIM card of a smartphone or a smart card. Other than that, it requires only two wallets to work. With these requirements met, the system can function at full capacity without the need for an online connection, such as via NFC.
G+D’s MB of CBDC, Raoul Herborg, commented on the new technology, saying that the capability of paying offline in the existing digital system can significantly enhance financial inclusion and payments resilience. On top of that, it can support cash-like features in the digital world and help further drive innovation by delivering new and advanced use cases for the tokenized economy.
