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Payment Outages Threaten $44.4 Billion in U.S. Retail & Hospitality Sales Annually

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Philadelphia, PA and Boston, MA, Jan. 12, 2026 (GLOBE NEWSWIRE) -- A new study released today reveal...

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AI Summary

Payment failures risk $44.4 billion in U.S. retail sales annually. Businesses face over five major outages each year, 63% during peak times. Consumers abandon purchases after 7 minutes of delays, costing billions. Less than 30% of consumers carry cash, exposing vulnerabilities. Brand trust erodes significantly due to payment failures and delays.

Sentiment Rationale

Dynatrace's involvement in addressing payment issues positions it favorably in the market. Historical examples show tech companies benefit from being integral to operational reliability during disruptions.

Trading Thesis

As businesses invest more in payment solutions to avoid disruptions, Dynatrace's role will become increasingly pivotal. Past trends indicate sustained growth for companies that enhance payment infrastructures.

Market-Moving

  • Payment failures risk $44.4 billion in U.S. retail sales annually.
  • Businesses face over five major outages each year, 63% during peak times.
  • Consumers abandon purchases after 7 minutes of delays, costing billions.

Key Facts

  • Payment failures risk $44.4 billion in U.S. retail sales annually.
  • Businesses face over five major outages each year, 63% during peak times.
  • Consumers abandon purchases after 7 minutes of delays, costing billions.
  • Less than 30% of consumers carry cash, exposing vulnerabilities.
  • Brand trust erodes significantly due to payment failures and delays.

Companies Mentioned

  • FREEDOMPAY (FREEDOMPAY)

Industry News

The findings emphasize Dynatrace's key role in improving payment systems, directly influencing stock potential.

Payment Outages Threaten $44.4 Billion in U.S. Retail & Hospitality Sales Annually

Philadelphia, PA and Boston, MA, Jan. 12, 2026 (GLOBE NEWSWIRE) — A recent study reveals alarming statistics as payment system failures jeopardize $44.4 billion in annual U.S. retail and hospitality sales. Conducted by FreedomPay and Dynatrace (NYSE: DT) in collaboration with Retail Economics, the research emphasizes the rising frequency and detrimental effects of payment disruptions, highlighting how these incidents can swiftly disrupt daily operations.

Impact of Payment System Failures

The study indicates that payment failures are now a recurrent operational issue rather than isolated incidents. These disruptions not only hinder service but also undermine customer trust, leading to significant revenue loss. U.S. businesses report experiencing an average of over five major outages annually, with 63% of these occurring during peak trading periods, substantially exacerbating the financial repercussions.

“Consumer-facing businesses in the U.S. are navigating an increasingly treacherous landscape,” said Chris Kronenthal, President at FreedomPay. “From widespread outages and connectivity issues to the fragility of existing payment infrastructure, disruption has become a constant. This environment creates a perfect storm for significant revenue loss and long-term damage to customer loyalty and brand reputation.”

Key Findings from the Study

  • Ongoing Annual Losses & Frequency: Payment system failures threaten approximately $44.4 billion in U.S. retail and hospitality sales each year. Businesses average over five major payment disruptions annually, with 63% occurring during critical peak trading hours.
  • Patience Gap Drives Revenue Loss: Consumers abandon purchases after waiting just 7 minutes, yet the average outage lasts around 2 hours. This delay can cause losses of approximately $1.2 billion in sales per minute between the 8th and 13th minute. By the 23-minute mark, cumulative losses may reach $5.3 billion, erasing 70% of all at-risk revenue.
  • Vulnerable Without Reliable Fallbacks: With less than 30% of U.S. consumers consistently carrying cash and 15% of businesses lacking secure digital payment backups, merchants remain highly vulnerable when digital systems fail.
  • Reputational and Human Impact: Beyond financial ramifications, payment failures can lead to considerable reputational damage among digitally savvy consumers, with 60% of managers reporting incidents of verbal abuse towards frontline staff.

The Broader Implications of Payment Outages

“This research shows that payment disruption becomes a business problem long before it is uncovered as a technical one,” said Philippe Deblois, Global Vice President of Solutions Engineering at Dynatrace. “When payment systems fail, time is the most expensive variable. In complex environments, delays arise when teams can't quickly identify the source of a problem. Customers don’t wait for that clarity; they leave, and revenue is lost in minutes.”

Richard Lim, CEO at Retail Economics, added: “The financial impact of payment outages is significant, but the erosion of consumer trust and brand loyalty can cause equally devastating damage. Investing in robust payment infrastructure and the ability to proactively observe potential points of failure is essential for safeguarding future growth.”

Conclusion

This study sheds light on the critical need for businesses to bolster their payment systems to prevent severe financial losses and maintain customer trust. As the retail landscape evolves, proactive measures and technological investments are paramount for enduring success.

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