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Daily Record
07-05-2025
- Business
- Daily Record
'Cash rule' warning for UK tourists in Spain, France and Portugal amid power outage threats
Holidaymakers have been urged to ensure they are carrying physical cash Brits planning to travel to Spain, Portugal and France this summer have been warned to carry cash following last week's massive power outage on the Iberian peninsula. On Monday, April 28, the countries were hit with a widespread power cut that affected everything from metro lines to air travel. During the blackout people were unable to use their bank cards and cash machines, meaning they had no funds to pay for essential items. And amid the threat of further outages, European Union holidaymakers have now been warned to ensure they are keeping coins and banknotes on them during future holidays. Chris Jones, director of PSE Consulting, said: 'The widespread outages across Spain, Portugal and some parts of France earlier this week are a stark reminder of why cash remains essential. "As digital transactions dominate more aspects of daily life, we risk overlooking the fundamental resilience that physical money offers during periods of disruption, reports Birmingham Live. Join the Daily Record WhatsApp community! Get the latest news sent straight to your messages by joining our WhatsApp community today. You'll receive daily updates on breaking news as well as the top headlines across Scotland. No one will be able to see who is signed up and no one can send messages except the Daily Record team. All you have to do is click here if you're on mobile, select 'Join Community' and you're in! If you're on a desktop, simply scan the QR code above with your phone and click 'Join Community'. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. To leave our community click on the name at the top of your screen and choose 'exit group'. If you're curious, you can read our Privacy Notice. 'When systems fail — whether due to technical issues, cyberattacks, or power outages — access to cash ensures that people can still buy essential goods and services. In emergencies, cash becomes more than just a payment method; it is a vital safety net 'While cash usage continues to decline across Europe, events like this reinforce why maintaining robust access must remain a priority. This includes identifying and supporting critical services – such as supermarkets, petrol stations and pharmacies – to ensure they can continue accepting cash when digital systems are down. "Countries like Sweden and Norway have already recognised this, encouraging citizens to keep emergency cash and reinforcing cash acceptance in key parts of the economy. 'As we continue to move towards a more digital economy, policymakers and businesses must not lose sight of the need for balance. "Protecting access to cash isn't just about supporting vulnerable groups — it's about ensuring the whole economy can function when digital systems falter. "[This week's] outage is a clear reminder: in times of crisis, cash still counts.' While it had been considered the outage could have been caused by a cyber attack, the possibility was ruled out by officials. Extreme weather and variations in temperatures have been blamed for the sudden power disruptions, with officials attributing the outages to a "rare atmospheric phenomenon". Prof Jianzhong Wu, the head of the school of engineering at Cardiff University, told the Guardian blackouts 'can happen anywhere'. 'Despite today's high standards of reliability, low-probability but high-impact blackout events can still happen. "These networks are not designed to be completely blackout-free because achieving such a level of reliability would require investment far beyond what is economically feasible,' he said. Charmalee Jayamaha, a senior manager at the UK government-backed Energy Systems Catapult, said: 'No system can be 100% resilient,' so risks 'need to be balanced with our willingness to pay to reduce them'.
Irish Examiner
03-05-2025
- Business
- Irish Examiner
Why cash is still king: Ireland warned after Spain's digital payment blackout
One could only feel sorry for the flustered shopkeepers on the beachfront boardwalks along Spain's sunshine coasts this week, holding impromptu sales as their stock literally went into meltdown. The electricity power failure which swept the Iberian peninsula meant ice-cream shops had plenty of treats to sell, but a short window to sell them. With electronic payment options shut down by the power cut, customers without hard cash had no method to pay, even at knockdown prices. The Spanish experience has highlighted how Ireland is vulnerable to similar shortcomings. Contactless payments now make up almost nine out of every 10 card payments in shops, restaurants, and retail outlets. More than 1.5bn contactless payments were made in 2024, valued at €26.7bn, according to the Banking & Payments Federation Ireland's (BPFI) Payments Monitor. When electronic payments are unavailable, the old mantra of cash being king quickly becomes apparent. Chris Jones is managing director at PSE Consulting, a specialist business and technology payments system advisory company, and has advised on major payments infrastructure projects across Europe. "The widespread outages across Spain, Portugal, and some parts of France earlier this week are a stark reminder of why cash remains essential," he said. "As digital transactions dominate more aspects of daily life, we risk overlooking the fundamental resilience that physical money offers during periods of disruption. Passengers wait outside Atocha train station during a nationwide power outage in Madrid, Monday, April 28, 2025. (AP Photo/Manu Fernandez) 'When systems fail — whether due to technical issues, cyberattacks, or power outages — access to cash ensures that people can still buy essential goods and services. In emergencies, cash becomes more than just a payment method; it is a vital safety net.' There are now 1.07bn individual banknotes, with a value of €51.8bn, issued in circulation in Ireland since the introduction of the euro in 2002. There are 4.6bn individual coins - with a value of €800m - in circulation. A Central Bank of Ireland spokesperson said that while the use of cash in Ireland is declining, it plays a vital role for "financial inclusion, ensuring the financial services needs of some consumers are served. It is very clear there is a continued societal and economic demand by households and businesses to be able to use cash as a means of payment." The European Central Bank's 2022 study on payment attitudes of consumers in the euro area found that 64% of Irish respondents stated the option to pay by cash is either very important or fairly important. This was the joint highest in the euro area countries. Electronic and non-cash payments for shopping and household bills continued at pace in recent years. BPFI research found those aged over 55 are least confident in using any of the new banking and payment technologies. But that continued faith in cash makes them most resilient to electronic payment failures. More than half of all contactless payments are now made using mobile wallets such as Apple Pay or Google Pay, rather than cards, and younger cohorts are most reliant on phone and watch technology to make those payments. Most don't carry cash. Some don't have physical bank cards. The cause of the power outage in Spain and Portugal is still unclear. Cathal McSweeney, director of public and international affairs at Cork Chamber said the power outages are a stark reminder of the critical importance of energy security and resilience, 'particularly for a digitally driven economy like Ireland's. Ensuring a stable and future-proof electricity supply requires continued investment in generation and in our national grid.' An EirGrid spokesman said Ireland's State power transmission operator is continuing to 'closely monitor' outcomes of ongoing investigations into the Spanish and Portuguese incidents for "insights that may be of relevance to the operation of Ireland's power system to enhance ongoing measures designed to safeguard the resilience of the Irish electricity grid". Ireland had its own widespread power outage earlier this year, when 768,000 people were without electricity at the height of Storm Eowyn. Mobile communication was also cut off in many areas. What were once considered extreme weather events are now occurring with alarming regularity. Meanwhile cyber threats are a constant threat. Marks & Spencer saw its systems compromised over the Easter weekend by hackers while the HSE cyber attack in 2021 showed that hackers will target states too. Last October, then finance minister Jack Chambers published the National Payments Strategy noting the importance for 'appropriate system-wide contingency arrangements' to prepare for and manage disruptions to payment services. Banks and the fintech sector have prioritised and invested in the operational resilience of payment systems, the BPFI said. 'In the event of a widespread power outage in Ireland, as with many other types of vital services, some payment methods may be affected, but there are many variables involved depending on the particular scenario,' a BPFI spokesperson said. In preparing the National Payments Strategy, three submissions were received from public bodies specifically addressing resilience, with many more calling for enhanced resilience in the overall payments system, including through the use of cash for contingencies. The suggestions included that Ireland needs a national group on system-wide contingency arrangements for payment services. BPFI, representing over 125 banks and financial institutions, said it continues to work closely with the Department of Finance and the Central Bank to support key National Payments Strategy actions on resilience and crisis preparedness. Events in Spain and Portugal highlight the importance of personal preparation, and that keeping ready cash close at hand is now more important than ever. 'Events like this reinforce why maintaining robust access must remain a priority," said Mr Jones. "This includes identifying and supporting critical services – such as supermarkets, petrol stations, and pharmacies – to ensure they can continue accepting cash when digital systems are down. Countries like Sweden and Norway have already recognised this, encouraging citizens to keep emergency cash and reinforcing cash acceptance in key parts of the economy. 'As we continue to move towards a more digital economy, policymakers and businesses must not lose sight of the need for balance. Protecting access to cash isn't just about supporting vulnerable groups — it's about ensuring the whole economy can function when digital systems falter. The outage is a clear reminder: in times of crisis, cash still counts.'
