A new study reveals the staggering cost of payment system failures to UK retail and hospitality businesses, estimating losses of £1.6 billion annually.
The research, conducted by FreedomPay and Dynatrace, highlights the increasing frequency and impact of these disruptions on day-to-day trading, with consumers exhibiting low tolerance for delays.
Adding to the concern, the study finds that one in five retail and hospitality businesses lack a secure digital backup when systems fail, exacerbating the potential for lost revenue.
The study indicates that these failures are not isolated incidents but a recurring operational challenge that disrupts service, damages customer trust and negatively impacts revenue. UK businesses are reporting an average of over five major outages each year, with 61% occurring during peak trading periods, amplifying the financial impact.
“Consumer-facing businesses are operating in increasingly unpredictable conditions,” said Chris Kronenthal, President, FreedomPay. “From extreme weather and power failures to cyberattacks and system outages, disruption is no longer the exception, it’s becoming the norm. The lack of planning by businesses, coupled with the fragility of existing infrastructure, is creating a perfect storm for revenue loss and reputational damage.”
“Payment resilience isn’t just an IT issue, it’s a critical business capability,” said Alois Reitbauer, Chief Technology Strategist, Dynatrace. “Outages don’t just stop transactions; they break the customer journey and disrupt essential services. To stay resilient, businesses need real-time visibility, the agility to adapt in real time, and technologies that auto prevent and auto remediate disruptions. In a world where disruptions are inevitable, speed and insights are a business’s most valuable safeguards.”
