G+D Filia brings offline capability to digital payments

Giesecke+Devrient (G+D) is making digital payments independent of online connectivity with a token-based payment solution G+D Filia Unplugged enabling secure offline payment transactions, bridging the gap between online and offline payments without a reliable internet connection.

G+D Filia brings offline capability

Connectivity issues can present challenges for digital payment transactions, especially in rural areas. The lack of connectivity may be due to a power outage, the absence of a strong internet signal, or a telecommunications failure.

The efficiency of online payment systems is fundamentally linked to the availability of a stable internet connection. In highly industrialized economies, internet access is not uniformly reliable.

In developing countries, the situation is particularly challenging as 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.

Incorporating offline capabilities into digital payments can overcome these challenges.

The Bank for International Settlements (BIS) defines offline payments as the transfer of a digital money token between devices that takes place without the payer and payee requiring a networked connection to any ledger system or backend system to complete the payment.

G+D Filia Unplugged can be integrated into existing digital payment offerings, including commercial banks’ tokenized deposit systems, instant payment systems, or mobile money services.

The solution is designed with three protection layers and cash-like features to provide reliability, security, and trust while functioning independently of internet connectivity.

The introduction of a token-based solution such as G+D Filia Unplugged not only strengthens payment resilience but also has the potential to drive financial inclusion for nearly 1.4 billion unbanked people worldwide.

The offline function enables use cases such as peer-to-peer payments (P2P) between individuals or payment-to-business payments (P2B).

The technology functions like many streaming services, which allow users to download audio or video files that can then be played offline.

The solution stores monetary tokens on a hardware wallet (e.g. the SIM card of a smartphone) and requires only two wallets to operate, which can then be used without an online connection, for example via NFC.

Offline payment functionality benefits

As a BIS study from 2023 underlines, offline functionality is also a necessity for a Central Bank Digital Currency (CBDC), which is currently being explored by numerous central banks worldwide.

The success of several CBDC pilot projects around the globe has demonstrated the importance of offline payments.

This has highlighted the significance of CBDCs mirroring cash-like features like data security and privacy, with the ability to operate offline as a fundamental component.

At the same time, commercial banks, Fintechs, instant payment systems and service providers for mobile payments benefit from the integration of offline capabilities into their payment systems.

This allows the expansion of their customer base by offering more inclusive and resilient payment services.


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