Earlier this week, Marks & Spencer (M&S) experienced a significant “cyber incident” that disrupted key services, most notably contactless payments and online order processing.
The incident began over the Easter Bank Holiday weekend, one of the busiest shopping periods of the year in the UK. Customers reported issues including being unable to use gift cards or vouchers, and some stores resorted to accepting only cash or chip-and-pin payments, which was obviously a major issue for business operations.
While physical stores remain open, the company has paused click-and-collect services and warned of potential delays in online deliveries. M&S hasn’t been able to confirm the nature of the attack – hence the use of the term “cyber incident” – but it is reportedly working with experts to restore services and investigate the cause.
Now, this disruption raises questions about the reliability of traditional payment systems and the potential benefits of adopting blockchain technology for transactions.
Blockchain offers a decentralised approach that could enhance security and reduce the risk of widespread service outages. As retailers like M&S grapple with cyber threats, exploring alternative payment methods may become increasingly important to ensure business continuity and customer trust.
Blockchain Technology and Virtual Payments: How Does It Work?
Blockchain technology enables virtual payments through a decentralised, distributed ledger system that records transactions across a network of computers. Unlike traditional payment systems, which rely on a central authority like a bank, blockchain operates without intermediaries.
Each transaction is grouped into a block, verified by a network of nodes (computers), and then added to a chronological chain of previous transactions – hence the name “blockchain”. This process is secured using cryptography, making it extremely difficult to alter or tamper with past data.
In the context of payments, blockchain tech allows users to transfer digital currencies (like Bitcoin or stablecoins) directly to one another, often at lower fees and faster speeds than traditional systems, especially for international transfers.
Since it’s decentralised, even if part of the network is compromised, the system as a whole remains functional. This resilience, along with transparency and security, makes blockchain an increasingly appealing option for virtual transactions in a cyber-threatened world. Thus, it’s no surprise that it’s emerged as a talking point in the midst of the M&S payment outage.
But, is blockchain a viable alternative to traditional payment methods? We spoke to a group of experts to get their insights into the topic and hear their opinions.
Our Experts
- Richard Baker: Board Member of BSV Association (BSVA)
- Peter Wood: CTO at Spectrum Search
- Will Kogan: General Manager at Franklin Parcel
- James Camilleri: CEO and Co-Founder of Fyorin
- Tom Fairbairn: Engineer at Solace
Richard Baker, Board Member of BSV Association (BSVA)
“In the wake of the recent cyber incident at Marks & Spencer (M&S), which disrupted contactless payments and online services such as click-and-collect, the vulnerabilities of centralised digital infrastructure are becoming alarmingly evident. A single point of failure, whether caused by a cyberattack, technical glitch or human error can result in significant operational paralysis, affecting customers and brand trust.
This is where blockchain technology, particularly Proof-of-Work based models, offers a powerful alternative. With data distributed across a global network of nodes, blockchain eliminates the single point of failure. Even if individual nodes are compromised, the system remains functional—providing resilience and continuity during crisis.
Emerging blockchain technologies are revolutionising financial security by providing an immutable, real-time ledger of transactions and data. Unlike conventional systems that rely on fragmented databases and manual reconciliation, BSV Blockchain ensures that every transaction is permanently recorded and independently verifiable. This level of transparency isn’t just a regulatory advantage, it’s a fundamental shift in how financial institutions manage risk, enhance compliance, and drive operational efficiency.
As cyberattacks become more sophisticated, the consequences extend far beyond corporate balance sheets. Market confidence, economic stability, and global commerce all depend on secure, verifiable financial data. Financial breaches do not just expose confidential records, they create ripple effects that destabilise businesses, erode consumer trust, and increase regulatory scrutiny. The reality is that financial institutions continue to operate on trust-based systems that can be manipulated, rather than on infrastructure designed for inherent security and integrity.
For years, financial leaders have grappled with unreliable data and delayed audits. Blockchain-based audits can be conducted in real time, allowing institutions to detect discrepancies immediately rather than months later. Therefore, fraud becomes exponentially harder to execute when every financial action leaves a traceable, time-stamped record. Organisations can now move beyond costly third-party verification processes and instead rely on a single, secure source of truth.
Traditional systems depend on manual oversight and reconciliation, which introduce unnecessary inefficiencies and vulnerabilities. Blockchain provides a safeguard against human error by ensuring that every transaction is cryptographically secured and automatically recorded. This removes the need for constant verification, enabling financial institutions to operate with greater accuracy, efficiency, and trustworthiness.
Fraud, identity theft, and account takeovers remain persistent challenges in financial services and traditional identity verification systems, reliant on passwords and centralised databases, are prone to frequent breaches. The consequences are severe—financial losses, reputational damage, and increased regulatory scrutiny. Blockchain-based digital identity solutions offer a more secure and efficient alternative, benefiting both individuals and institutions.
By decentralising identity management, blockchain enables:
- Fraud-resistant authentication, preventing stolen credentials and reducing the risk of unauthorised access.
- Instant, verifiable identity checks, allowing businesses to quickly confirm identities and comply with financial regulations.
- A tamper-proof audit trail, ensuring transparency and making financial crimes like money laundering easier to detect.
Blockchain technology removes reliance on fragmented, insecure identity systems, giving individuals greater control over their credentials while allowing organisations to enhance security and reduce administrative overheads.
Blockchain is more than just an evolution of financial security—it is a paradigm shift in how we manage trust in the digital age. The institutions that recognise and adopt this technology today will be the ones leading the business into a new era of accountability, resilience, and growth. Businesses must move beyond outdated methods of trust that rely on assumptions and intermediaries. Instead, they need technology that guarantees security and transparency at its core.”
Peter Wood, CTO at Spectrum Search
“When I look at the fragility of today’s payment systems it’s clear we’re relying on centralised infrastructure that’s too prone to single points of failure. That’s where blockchain flips the script. Rather than trusting one system or server, transactions are validated across a decentralised network, making downtime far less likely and transparency far greater.
I’ve seen how real-time settlement on blockchain can cut out intermediaries entirely. That’s not just about speed – it’s about slashing costs, especially across borders where traditional systems rely on layers of verification and processing. Imagine sending money to someone in another country and it arrives, verified and final, in seconds. That’s not a future scenario. That’s already possible.
One under-discussed edge is programmability. With blockchain, payments can be wrapped in logic – like releasing funds only when certain conditions are met. This isn’t just convenient. It’s foundational for trustless commerce and automation, which are both massive unlocks for global business.
I don’t think blockchain will replace every legacy payment system overnight. But I do believe it’s laying the groundwork for a parallel payments infrastructure – one that’s more resilient, more inclusive, and frankly, more aligned with how digital economies want to operate.”
Will Kogan, General Manager at Franklin Parcel
“The recent M&S contactless and online payment shutdown highlights the vulnerabilities in current payment systems, particularly when they are targeted by cyberattacks. Blockchain does present a promising solution due to its decentralised nature, which reduces reliance on centralised systems and makes it harder for hackers to disrupt the whole system. Blockchain provides transparency, security, and the ability to trace transactions in real-time, which could minimise the risk of large-scale disruptions like those we saw with M&S.
However, it’s important to recognise that blockchain isn’t a silver bullet. For blockchain to truly replace or complement existing digital payment systems, scalability, regulatory challenges, and consumer acceptance will need to be addressed. While the technology is secure, its widespread adoption would require significant infrastructure changes, as well as ensuring compatibility with current systems used by banks, merchants, and consumers.
If blockchain were to become the norm, it could fundamentally change how we approach digital payments. With fewer intermediaries involved, transactions could become faster, cheaper, and more secure, reducing the potential for fraud and cyberattacks. It could also open up new possibilities for cross-border payments, eliminating the need for multiple currencies and banks to handle transactions, streamlining global trade.
However, blockchain’s impact on the world would likely extend beyond payments. Its use in logistics, for example, could improve transparency and efficiency in tracking goods, ensuring that every step of the supply chain is visible and secure. But for blockchain to become mainstream, we need a unified effort across industries to solve the scalability, regulatory, and user experience challenges that currently hold it back.
In short, while blockchain does offer a potential solution for improving the security of digital payments, we’re still some way off from it being a widespread replacement for current systems. It’s an exciting future, but it will require a lot of work to make it a reality.”
James Camilleri, CEO and Co-Founder of Fyorin
“Blockchain has huge potential in this space. Its decentralised, tamper-proof design makes it an exciting prospect for the future of payments, especially as concerns around fraud and cybersecurity continue to grow. That said, we’re still a long way from seeing it fully adopted in everyday consumer transactions.
For now, I believe it’s vital that retailers and e-commerce businesses take a proactive approach, diversifying their financial operations to protect against disruption. Having multiple payment providers not only helps manage cash flow more effectively, but it also means that if one system goes down, business doesn’t have to stop. Resilience is everything.”
Tom Fairbairn, Engineer at Solace
“Investing in the right technology, such as event driven integration, offers a solution by facilitating a more efficient flow of information. Instead of constantly polling for updates, systems react to specific events, like a customer initiating a payment. This allows for a more streamlined service, minimising wait times and ensuring a seamless user experience for customers.
The outdated technology simply can’t handle the demands of the modern financial landscape. This not only impacts operational efficiency but also hinders the customer experience. Customers expect a flawless payment process and will become increasingly frustrated at any delay. Traditional architectures can become quickly overwhelmed by the sheer volume of transactions, leading to delays and disruptions.”
