Card payments, ATM services resume in Spain after massive blackout spikes demand for cash
Banking services that rely on electricity, such as credit card payments and ATM removal, have been further restored to Spain after an uninterrupted electricity flow this week that could cost the EU country's economy of more than € 1.5 billion.
The Colossal Blackout, which paralyzed most of the Iberian Peninsula this week, including Portugal, caused chaos and emerging demand for cash because paper money suddenly became a way of payment that many businesses could accept.
Spain returns banking and payment operations after blackout
Electronic payments, including bank cards at point-of-sale (POS) terminals, and automatic teller machine (ATMs) services are re-available to Spanish and Portugal residents, the two European countries that have been hit by a massive flow of electricity on Monday.
Wholesale and retail payments “regularly works,” the Bank of Spain announced on Tuesday. Short update on the current state of Kingdom payment infrastructure and banking sector came after Spain restored the power supply.
The financial authority emphasized the “full recovery of almost all major shopping centers” that many of which lost access to electronic payment methods during the blackout, along with other retailers and regional service providers.
Operations at credit institutions are “running normally,” the regulator added while admitting that the glitches are still reported to some bank branches and ATM locations. Banco de España also said that it would normalize cash distribution from its branch offices.
Iberpay, the private operator of Spain's National Electronic Clearing System (SNCE), Na -Post On its website “The Spanish Retail Payment System, the Spanish Cash Distribution System, and the sectoral information services all operate normally.”
Spain's power grid operator, Red Eléctrica, taken in x Earlier to inform consumers it had restored almost 100% of the power supply to the peninsula. All transforming delivery returned to operation, the company said in another post.
Actualizamos información⬇️11: 15h.
✅Normalizado El Funcionamiento del System Eléctrico Peninsular.
✅TRAS SUPAR LA PUNTA DEMA DE LA MAÑANA A LAS 8.35 CON 28.677MW, EL PICO NOcturno Se Espera a Las 21: 10H Con 31.200 MW.– Red Eléctrica (@redelectricaree) April 29, 2025
However, the declared state of emergency remained in the area in the affected areas in both Spain and Portugal on Tuesday. “It has never happened before,” Spain Prime Minister Pedro Sánchez said at an address in the country last night.
Sánchez introduced Madrid had no conclusion about the causes of the blackout, but Red Eléctrica ruled a cyberattack. According to its director, Eduardo Prieto, the crisis may have been attributed to “powerful oscillations on the electrical network” that the system discarded.
Blackouts featured the importance of cash after retreating and card payments are offline
The Power Outage, the largest in the history of the region, has left millions of people in Spain, Portugal and parts of Southern France with disturbing access to basic services. Sudden interruption in electric supply has hit important infrastructure, including public transportation systems and health institutions.
Spanish economic losses are expected to reach 0.1% of GDP, or € 1.6 billion euros ($ 1.82 billion), according to a Reuters report that quoted Confederación Española de Organizaciones Empresariales (CEE), the country's main lobby organization.
Digital payment systems are particularly affected, leading to significant limited options to pay bank cards or through mobile apps. Bank branches are closed and ATMs closed, it is impossible to remove impossible in many cases.
“Nunca llevo efectivo, but después de lo que pasó, he venido a sacar cien euros for tenerlos en casa por si las moscas”. Después del Apagón, Los Bancos Han Vuelto an Operar Con normality, Aunque el Temor Lleva a varios usuarios a hacer reservas de diner
– El país (@el_pais) April 29, 2025
Many stores have chosen to close the doors during the crisis while on those who remain open, cash payments prevail write. Not everyone who wants to buy water, food or battery has cash.
In recent years, the government in Madrid has tried to reduce the use of cash as part of efforts to hinder tax prevention. Since 2021, Spanish businesses have been allowed to receive only up to € 1,000 cash per transaction. The threshold previously stood at € 2,500, politico mentioned In an article.
According to the European Central Bank, cash is still very popular in Spain, which costs 57% of retail transactions while at the same time offline payments through bank cards and mobile applications are less than 40%.
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