Card payments are not being accepted at hundreds of stores, with only cash accepted.
The supermarket has also had to cancel online and click and collect orders.
A spokesperson for Sainsbury’s said: “'Due to an error with an overnight software update, we are experiencing issues with contactless payments.
"All of our stores are open as usual today, accepting chip and pin and cash payments.
"Unfortunately, this also means we will not be able to deliver the vast majority of today’s groceries online orders and we are currently unable to contact customers directly, but will contact them as soon as we can to rebook orders.
"We apologise to customers for the inconvenience and are working hard to fix the issue.''
This latest statement comes after the supermarket chain said it was experiencing a ‘technical issue’ which was ‘affecting some stores’, groceries online service and ‘our ability to contact customers directly’.
In an update at 12pm, the supermarket chain said its online ordering system is ‘working as normal’ and customers can place a new order now for delivery ‘any time from tomorrow’ (Sunday).
A similar fault was experienced by McDonald’s on Friday. The system failure closed restaurants and disrupted orders around the world.
1. Queues for cash machine at Sainsbury's in Worthing after card payment system fails
People are queueing for cash points outside Sainsbury’s stores in Sussex after a major IT fault, which has prevented card payments. Photo: Eddie Mitchell
2. Queues for cash machine at Sainsbury's in Worthing after card payment system fails
People are queueing for cash points outside Sainsbury’s stores in Sussex after a major IT fault, which has prevented card payments. Photo: Eddie Mitchell
3. Queues for cash machine at Sainsbury's in Worthing after card payment system fails
People are queueing for cash points outside Sainsbury’s stores in Sussex after a major IT fault, which has prevented card payments. Photo: Eddie Mitchell