Spain faced a nationwide mobile network outage, impacting all providers and leaving users without signal, internet, or access to critical systems, just weeks after a widespread electricity blackout.

The disruption, linked to a failed system upgrade at Telefónica, paralyzed businesses unable to load software or connect devices, underscoring the fragility of digital infrastructure. This incident highlights the growing risks of relying heavily on online payment systems and apps, which falter when mobile networks fail, causing transaction failures and operational chaos.

The outage has sparked broader concerns about digital dependency amid rising geopolitical and cyber threats. Nordic countries like Finland, Sweden, Norway, Denmark, and Estonia are addressing these vulnerabilities by developing offline card payment systems, with Norway and Denmark already implementing solutions and Sweden planning to follow by July 2026. Sweden’s central bank recently emphasized the importance of cash as a safeguard against online threats, reversing the push for a cashless society to protect consumers in an increasingly unstable digital landscape.

Azimkhon Askarov, co-CEO of Barcelona-based payments firm Concryt, warns that Spain’s telecom outage reveals the critical link between mobile infrastructure and digital payments. He notes that network failures lead to failed transactions, frustrated customers, and revenue losses for merchants, alongside increased chargebacks and strained support systems. Askarov stresses the need for stronger coordination between telecom providers and the financial technology sector to bolster infrastructure resilience, calling it “essential” to ensure service continuity and maintain customer trust in an era where mobile payments dominate.