What's Happening?
A recent study by BR-DGE, a payment orchestration provider, has revealed that 92% of enterprise e-commerce merchants have faced payment outages or disruptions over the past two years. The research surveyed
50 decision-makers from various sectors including retail, travel, and digital services, highlighting significant gaps in payment resilience. These outages have resulted in substantial revenue losses, with half of the merchants reporting losses between £1.1 million and £10 million. The study also found that payment issues have hindered growth, preventing 54% of merchants from entering new markets. In response, BR-DGE has launched the 'Payments Resilience Playbook' to help merchants strengthen their payment infrastructure. The research underscores the importance of building a flexible, interoperable payment system to avoid outages and protect revenue.
Why It's Important?
The findings from BR-DGE's research are crucial for the e-commerce industry, as they highlight the vulnerability of merchants to payment disruptions. These outages not only lead to significant financial losses but also damage customer trust and hinder market expansion. The emphasis on payment resilience as a growth strategy suggests that merchants need to prioritize robust payment systems to maintain competitiveness. The study's insights could drive industry-wide changes, encouraging merchants to adopt more resilient payment infrastructures. This shift could benefit consumers by ensuring smoother transaction experiences and potentially lower costs due to reduced operational disruptions.
What's Next?
Merchants are likely to explore the recommendations in the 'Payments Resilience Playbook' to enhance their payment systems. This could involve investing in technologies that offer redundancy, flexibility, and interoperability. As merchants seek to improve their payment resilience, there may be increased collaboration with payment orchestration providers like BR-DGE. Additionally, the industry might see a push towards automated backup routes to minimize downtime during outages. Stakeholders, including technology providers and merchants, will need to address technical integration challenges to fully realize the benefits of improved payment resilience.
