The Payments Systems Regulator Investigates Tech Outages
The Payments Systems Regulator (PSR) is currently investigating the recent surge of tech outages that have wreaked havoc on several prominent retail outlets in the past week.
Greggs joined the ranks of major firms experiencing IT issues, following similar incidents at McDonald’s, Tesco, and Sainsbury’s.
In response to these disruptions, the PSR has announced that it is closely examining the situation to determine if further action is necessary.
As the UK’s economic regulator for payment systems, the PSR’s primary goal is to ensure the smooth functioning of these systems for all users. If it identifies any weaknesses in payment infrastructure, it has the authority to escalate the matter to the Bank of England.
These incidents have thrust payment systems into the spotlight, with a series of technical glitches leaving customers unable to complete purchases.
- Sainsbury’s faced challenges fulfilling most online grocery orders on Saturday due to issues stemming from an overnight software update, which also impacted contactless payments in stores. Tesco also had to cancel a “small number” of orders.
- The previous day, McDonald’s outlets worldwide were unable to process orders due to a “global technology system outage.”
- Most recently, bakery chain Greggs experienced IT system failures in some stores on Wednesday.
Given the proximity of these outages, experts have speculated about potential links, such as a common network or payments infrastructure provider.
Alan Stephenson-Brown, CEO of IT firm Evolve, emphasized that these incidents serve as a stark reminder that even large corporations are vulnerable to IT challenges. He estimated that affected retailers could have incurred significant financial losses.
“This underscores that digital disruption poses a significant risk for many retailers. It is crucial to have robust contingency plans in place,” Mr. Stephenson-Brown remarked.
Jamil Ahmed, an engineer at transaction firm Solace, highlighted the growing risk of disruptions and vulnerabilities as businesses increasingly rely on digital transactions. He noted that customers now expect the same seamless digital experience from physical retailers as they do from online shopping platforms.
