Most businesses rely on electronic payments every day. But what happens when they stop working?
That was the scenario explored during a recent London Business Networks for Resilience exercise hosted at Lloyds Banking Group, bringing together businesses, business networks, Business Improvement Districts (BIDs), Borough Resilience Forums (BRFs) and local community partners to share insights and strengthen preparedness for widespread payment disruption.
Payment disruption might not be caused by a technology issue, as we learned from Denise Schipani, Analyst (Cyber and Geopolitical Intelligence) at Sibylline, who highlighted how geopolitical tensions and cyber threats are interconnected during her scene-setting briefing.
State-sponsored actors continue to target critical national infrastructure, while cyber criminals often exploit geopolitical events to launch attacks or increase disruption. Recent cyber incidents affecting companies such as Marks & Spencer, Co-op, Harrods and Jaguar Land Rover show the impact on business operations and their reputation. As well as directly targeting organisations, attackers frequently compromise trusted third-party suppliers, creating wider operational impacts across multiple sectors.
How prepared is your business if electronic payments become unavailable? Below are some key takeaways and actions to consider.
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Understand the situation
Whether disruption is caused by a cyber attack, a technical failure or another incident, it is important to understand what is happening, whilst appreciating that information may be limited.
Before responding, businesses should seek to establish:
- Is the issue isolated, provider-specific or part of a wider incident?
- What information is available from trusted sources?
- What are the alternatives?
The workshop highlighted the important role of BIDs and business networks in gathering information, sharing good practice and helping businesses avoid responding in isolation or to misinformation or disinformation.
At the same time, BRFs monitor the situation and prepare to coordinate action if the incident escalates.
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Communicate
Participants repeatedly emphasised that communication of ‘what we know’ can reduce uncertainty. Businesses should avoid providing or reinforcing speculation. Simply saying ‘we don’t know’ is better.
Businesses should communicate clearly with staff, customers and suppliers while also sharing information through trusted local networks. The earlier reliable information is shared, the easier it is to build a common operating picture and support informed decision-making.
As one theme emerged throughout the exercise, if trusted organisations don’t communicate, others will fill the information gap.
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Plan, prepare and connect
Resilience relies on having alternative ways of operating, established relationships and clearly understood roles across businesses, business networks, local authorities, BRFs and the financial sector.
Preparation before an incident enables coordinated action when disruption occurs.
Three actions to take before a payment disruption
Review your payment resilience
- Understand your payment provider’s contingency arrangements.
- Consider alternatives, including manual payment processes where appropriate.
- Decide in advance whether and how your business could temporarily accept cash.
Strengthen your communications
- Keep staff and supplier contact lists up to date.
- Know from whom you will receive trusted information.
- Build relationships with your local BID or business network before an incident occurs.
Test your business continuity plan
- Include payment system failure as a realistic scenario.
- Identify who makes key decisions and how issues are escalated.
- Practise alternative ways of serving customers if electronic payments are unavailable.
Three Actions to take during a payment disruption
Gather verified information
- Confirm whether the issue is local, provider-specific or part of a wider incident.
- Rely on trusted sources rather than speculation or social media.
Share information
- Keep staff and customers informed.
- Exchange intelligence and practical solutions through business networks and local partnerships.
Activate your continuity plan
- Implement agreed workarounds.
- Monitor the wider impact on your operations.
- Adapt your response as the situation develops.
