Market traders lose an estimated £10 million in sales each year because of failed card payments caused by mobile network congestion, according to new research from Virgin Media O2 and the National Market Traders Federation (NMTF).
The organisations have urged the government to reform the UK’s net neutrality rules, arguing that the regulations prevent mobile operators from prioritising business-critical services such as payment applications during periods of high network demand.
The survey of 312 market traders found that 73 per cent had lost sales in the past year because of payment issues at markets, festivals and events. One in seven said they had lost more than £1,000 annually.
Six in ten respondents said poor connectivity for card payments affects their business, with 70 per cent reporting failed transactions, 47 per cent saying customers abandoned purchases, and 37 per cent experiencing longer queues.
Virgin Media O2 said it already has the technical capability to prioritise time-sensitive services on its network but claimed current net neutrality rules, introduced more than a decade ago, prevent it from doing so.
The operator is investing £700 million in its mobile network this year as part of its Mobile Transformation Plan to improve network capacity, reliability and 4G and 5G coverage. However, it said temporary spikes in demand at large events can still overload local networks.
It said the research suggests the issue will become more significant as traders continue to move away from cash. Respondents estimated that around seven in ten payments at events now take place by card, while some businesses have become entirely cashless.
Ryan Patrick, founder of street food business Feast Streat Group, said mobile congestion had cost his company more than £80,000 in lost sales during a single weekend after payment terminals failed despite his business being the only trader at the event.
“As our operation has been designed so we can serve 30 to 40 restaurant quality meals every 20 seconds during a rush, fast and reliable payments are absolutely essential,” he said. “If a payment takes a few seconds longer it can make all the difference, let alone when a payment fails altogether.”
Jeanie York, chief technology officer at Virgin Media O2, said the current rules no longer reflected how consumers and businesses use mobile networks.
“Market traders are at the heart of local economies, yet too many are being left out of pocket by failed card payments leading to missed sales,” she said. “During periods of congestion, it makes no sense that rules created a decade ago hinder us from prioritising this business-critical traffic.”
Attempts to change net neutrality rules have been controversial in the past. Former US Federal Communications Commission head Ajit Pai’s 2017 proposal to end net neutrality in the country resulted in a day of action with over 50,000 websites including Amazon, Google and Facebook taking part to oppose the move.
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