Finance and Economics Discussion Series (FEDS)
December 2025
A Robust Risk Framework for Offline Payments
Bikash Poudel, Sarah Carey, Robert Flynn, Chakrapani Narayan, Richard Payne, Eshwar Satrasala, Seaira Spooney, and James Lovejoy
Abstract:
The capability to make offline digital payments is emerging as a vital component of the broader payments ecosystem, especially in scenarios in which internet connectivity is unavailable such as during a crisis or natural disaster. Offline digital payment services offer a secure and reliable alternative to cash. Even so, there are a limited number of viable offline payment protocols in production today. Our work introduces a comprehensive model for a secure, end-to-end offline payment experience using consumer-grade smartphones. Our model employs a robust cryptographic protocol and tamper-evident secure element (SE) hardware to prevent double-spending and counterfeiting while preserving user privacy.
Keywords: Diary of Consumer Payment Choice (DCPC), Digital wallet, Payment System
DOI: https://doi.org/10.17016/FEDS.2025.105
PDF: Full Paper
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