New Study Reveals U.S. Businesses Average Over 5 Major Outages Annually, with 63% Occurring During Critical Peak Trading Times
Philadelphia, PA and Boston, MA, Jan. 12, 2026released today reveals that payment system failures are putting $44.4 billion in U.S. retail and hospitality sales at risk each year, underscoring how quickly disruption can derail day-to-day trading. The research, conducted by FreedomPayand Dynatrace (NYSE: DT) in partnership with Retail Economics, highlights the increasing frequency and impact of these disruptions on day-to-day trading, with consumers exhibiting low tolerance for delays.
The findings show that payment failures are no longer isolated incidents, but part of a recurring operational challenge that disrupts service, damages customer trust, and negatively impacts revenue. U.S. businesses are reporting an average of over five major outages each year, with 63% occurring during peak trading periods, amplifying the financial impact.
"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 include:
- Ongoing Annual Losses & Frequency: Payment system failures are putting a staggering $44.4 billion in U.S. retail and hospitality sales at risk each year. U.S. businesses average over five payment disruptions annually, with 63% occurring during critical peak trading hours.
- Patience Gap Drives Revenue Loss: Consumers will wait just 7 minutes before abandoning a purchase, yet the average outage drags on for two hours. Once the patience runs out, losses escalate fast and U.S. businesses forfeit roughly $1.2 billion in sales per minute between minutes 8 and 13. By the 23-minute mark, cumulative losses can hit $5.3 billion, wiping out 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 any secure digital payment backups, merchants are left highly exposed when digital systems fail.
- Reputational and Human Impact: Beyond financial impact, payment failures expose brands to significant reputational damage among digitally savvy consumers and contribute to 60% of managers reporting verbal abuse towards frontline staff.
"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 happen when teams can't quickly see where a problem starts or how systems are connected. Customers don't wait for that clarity. They leave, and revenue is lost within minutes."
"Our research shows that the financial impact of payment outages is significant, but the erosion of consumer trust and brand loyalty can cause equally devastating damage," said Richard Lim, CEO at Retail Economics. "Investing in robust payment infrastructure and the ability to proactively observe potential points of failure is essential for safeguarding future growth, maintaining a competitive edge, and prioritizing long-term consumer preference."
The full U.S. study can be found here.
About FreedomPay
FreedomPay is the global leader in Next Level Commerce-transforming the way businesses power payments and experiences across the world. More than a payment solution, FreedomPay is a world-class independent payment gateway engineered to simplify complexity, break down the barriers of legacy systems, and revolutionize every point of interaction-whether in-store, online, or mobile. Chosen by the leading brands across retail, hospitality, sports and entertainment, food service, healthcare and higher education, FreedomPay delivers technology strength, integration breadth, and deep expertise in global payments innovation.
As one of the first solutions in North America validated by the PCI Security Standards Council for P2PE, FreedomPay sets the gold standard for payment security, trust, and performance. With a unified technology stack, lightning-fast APIs, and integrated solutions across payments, FreedomPay gives businesses total peace of mind plus the freedom to choose any hardware provider. Move faster, act smarter, and lead markets-not chase them. www.freedompay.com
About Dynatrace
Dynatrace is advancing observability for today's digital businesses, helping to transform the complexity of modern digital ecosystems into powerful business assets. By leveraging AI-powered insights, Dynatrace enables organizations to analyze, automate, and innovate faster to drive their business forward. Learn more at www.dynatrace.com.
About Retail Economics
Retail Economics is an independent economics research consultancy focused on B2B thought leadership in the consumer and retail industry. We analyze the complex retail economic landscape and draw out actionable insight for our clients. Leveraging our own proprietary retail data and applying rigorous economic analysis, we transform information into points of action.
Our service provides unbiased research and analysis on the key economic and social drivers behind the retail sector, helping to inform critical business decisions, giving you a competitive edge through deeper insights.
Jennifer Tayebi Burson for FreedomPay +1 734 395 0780 jennifer.tayebi@bursonglobal.com
