Spain has suffered a major mobile network outage, disrupting connectivity across the country and exposing the vulnerabilities of relying solely on digital infrastructure. Just weeks after a nationwide electricity blackout, the latest disruption has rendered mobile phones, internet connections, and business systems inoperable, causing widespread disruption for companies and consumers alike.
The outage, which affects all mobile networks, is believed to stem from a failed system upgrade by Telefónica, one of the country’s largest telecom operators. Businesses have reported being locked out of software, unable to connect to servers, and experiencing critical breakdowns in payment and communication systems.
The incident adds urgency to a growing debate across Europe about the risks of overdependence on online payment systems amid rising cyber threats and geopolitical instability. Several countries, including Norway and Denmark, have already implemented offline payment infrastructure, while Sweden plans to follow by July 2026. Finland and Estonia are also developing similar solutions to ensure payment continuity during internet or telecom outages.
Just a day prior to Spain’s outage, Sweden’s central bank reaffirmed the need to maintain cash as a reliable backup, warning that a fully digital financial system is vulnerable in crisis scenarios.
Commenting on the outage, Azimkhon Askarov, co-CEO of Barcelona-based payments company Concryt, said: “When mobile networks go down, the consequences for the payment ecosystem are immediate: failed transactions, frustrated customers, overwhelmed support teams, and increased chargebacks. For merchants, this creates not just technical disruption but a real risk to revenue and customer trust. Infrastructure resilience is no longer optional—it’s essential.”
The event underscores the urgent need for tighter coordination between telecom operators and fintech providers to safeguard against future outages and ensure the continuity of critical financial services.