Payment Meltdown Threatens £1.6B in UK Consumer Spending

Payment outages across the UK have disrupted retail and hospitality businesses, putting an estimated £1.6 billion in sales at risk. The outages, caused by technical issues affecting card terminals and digital payment platforms, have left customers unable to complete purchases, particularly during peak trading periods. Small businesses and independent retailers have been among the hardest hit, with many reporting sharp drops in daily revenue and increased customer frustration.

The disruptions come at a time when the retail and hospitality sectors are still recovering from the economic impact of inflation and the pandemic. Industry leaders have raised concerns over the growing reliance on cashless payments and the lack of backup systems for when networks go down. Without a reliable payment infrastructure, businesses face not only immediate financial losses but also potential long-term damage to customer trust and loyalty.

Trade bodies are now calling on the government and payment providers to strengthen system resilience and introduce better safeguards against outages. Proposals include mandatory contingency plans, greater transparency during downtime, and compensation for affected merchants. As the economy increasingly depends on digital transactions, ensuring uninterrupted payment services is becoming critical to sustaining business continuity and consumer confidence.