Payment system failures put Canadian businesses at financial and reputational risk: FreedomPay & Dynatrace study finds

TORONTO, ON, March 12, 2026 - Payment disruption is placing growing pressure on Canadian businesses. An estimated $7.6 billion in retail and hospitality sales is at risk each year due to payment system failures. A new collaborative report by FreedomPay, Dynatrace and Retail Economics reveals Canadians will wait just six minutes during a service outage before abandoning a purchase. However, the average outage lasts 67 minutes, leaving businesses susceptible to significant financial losses and potential damage to consumer trust and loyalty.

Canada is particularly vulnerable to payment disruptions, with businesses reporting almost seven (6.8) outages per year, a higher frequency than peers in the US (5.7), UK (5.1), France (5.0) and Germany (4.0). Large Canadian businesses with more than $700M in annual turnover report more frequent payment disruptions than smaller operators, increasing their exposure to the financial impact of outages.

The research draws on two nationally representative surveys, covering 2,000 Canadian consumers and 200 retail and hospitality managers, and examine the frequency, duration and commercial impact of payment disruptions.

"Payment disruption is a direct hit to the consumer and to businesses, and the longer it lasts, the more impact snowballs with missed sales and compounding recovery costs," said Christopher Kronenthal, President at FreedomPay. "Canadian businesses must adopt strategies to avoid and withstand disruption, including layered backup solutions and holistic payment ecosystems."

With customer trust and authenticity more important than ever, payment system outages also expose businesses to cascading vulnerabilities, potentially impacting long-term performance.

The report also examines how consumers behave when payment systems fail. It finds that almost two-thirds (63%) of "High-Risk Critics" (affluent, frequent shoppers) and more than one-third (38%) of "Silent Walkouts" (those who abandon without complaint) say a single payment failure reduces their trust in a business. This directly impacts long-term customer loyalty and return visits. The reputational risk can extend further online, with more than half (60%) of Gen Z saying they would likely share a negative experience on social media.

"When payments fail, customers don't just lose time, they lose confidence. A truly integrated payment resilience strategy, capable of anticipating, absorbing and recovering from outages, is no longer an option. It's the critical investment businesses need to make now to protect their transactions and reputation," said David Jones, VP of NORAM Solution Engineering at Dynatrace.

The urgency for Canadian businesses to invest in robust payment resilience is underscored by data showing that restoring payment systems within the first five minutes can prevent over 90% of potential losses. This highlights the critical need for rapid recovery capabilities.

Despite these alarming risks, many Canadian businesses are far from ready. The report states that one in three retail and hospitality businesses (32%) operates without any secure digital payment backup. Among those with some safeguards, investments are fragmented with only 44% using secondary internet connections, 40% offering offline card processing, and 29% that provide mobile payment alternatives. This disjointed approach leaves companies highly vulnerable to financial and reputational fallout.

"To effectively combat these vulnerabilities, businesses need to adopt solutions such as secondary internet for network resilience, offline card processing, and mobile payment alternatives. An integrated approach including robust POS reliability and guaranteed power continuity will enable businesses to secure financial stability and customer trust," said Richard Lim, CEO at Retail Economics.

Download the report here.

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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 https://www.freedompay.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. Learn more at https://www.retaileconomics.co.uk

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 https://www.dynatrace.com.

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