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Navigating Black Friday: How Payment Services Can Make or Break High-Risk, High-Revenue International Businesses

Black Friday represents a pivotal moment for high-risk, high-revenue businesses worldwide. Don’t be fooled: in the past decade Black Friday has become a global phenomenon. The surge in consumer activity offers unparalleled opportunities for revenue growth but also brings significant challenges. Payment service providers play a critical role in this dynamic, acting as both a potential bottleneck and a catalyst for success. 

This article explores the intricate relationship between Black Friday sales and payment services, highlighting how the right payment infrastructure can transform potential disasters into competitive advantages for high-risk enterprises worldwide. 

We won’t fail to mention actionable tips that you and your customers can use to ensure a smooth transaction flow that will leave all stakeholders happy. 

The Black Friday Surge: Opportunity and Risk

Unprecedented Transaction Volumes

Black Friday triggers a massive spike in consumer spending. For high-revenue businesses, this means handling transaction volumes that are exponentially higher than average. According to the website statistics.blackfriday, with data taken from and verified by Statista, many major EU countries (i.e. France, Spain, Italy) had an average spending of over 200 euros per shopper during Black Friday. 

To show that this weekend of spending has overflown the borders of the US and spread like wildfire worldwide, whop.com found out that US consumers are only 8th on the list for Black Friday purchasing intent; The UAE, Italy, Australia, Spain, Canada, Singapore, and France top the list (source: Whop, 100+ Black Friday Statistics for 2024.) . 

A study commissioned by Finder, highlights that in 2024 “Brits plan to spend an estimated £3.8 billion in the 2024 Black Friday and Cyber Monday Sales” (source: Finder, Black Friday in the UK: Statistics for 2024.), showing that the rise in spending is not limited to the US. Moreover, the same survey reveals that 3 in 5 British adults will spend money between Black Friday and Cyber Monday, with a whopping 86% of Gen Z planning to spend money. 

These staggering figures highlight the immense pressure on payment systems to perform flawlessly during this critical period. 

The Consequences of Payment System Outages

The high stakes of Black Friday are compounded by the potential for payment system outages. Past incidents have shown how detrimental such outages can be for both consumers and businesses. 

In December 2023, Apple Pay, Apple Card, and Apple Cash services experienced an outage that affected online and in-app transactions for nearly five hours (source: Andrew Heinzman, Apple Card and Apple Pay Services Are Having Problems, How-To Geek, December 20, 2023.) According to Apple’s System Status page, the outage began at 6:15 AM ET and was resolved by 10:45 AM ET. While brick-and-mortar transactions remained unaffected, the inability to process online payments during peak shopping hours underscored the vulnerability of even the most robust systems. 

Similarly, in November 2023, several payment processing systems including Visa, and Bolt experienced outages on Black Friday, causing significant disruptions (source: Abigail O’Leary, Chase, Visa and Bolt Down Causing Black Friday Payment Processing Misery for Millions.) Down Detector reported an 80% surge in people reporting issues with credit card payments on Visa, and users expressed frustration over declined transactions and lack of communication from their banks. 

One affected customer shared on social media: 

“Chase, you need to do a better job communicating when your system is down and up so I’m not sitting on hold for 15 min trying to figure out why my card keeps getting declined.” — Amanda Palumbo (source: Abigail O’Leary, Chase, Visa and Bolt Down Causing Black Friday Payment Processing Misery for Millions.) 

These incidents highlight how payment system failures can lead to lost sales, damaged reputations, and eroded customer trust during the most critical shopping periods. 

The Double-Edged Sword of Payment Services

Potential for Disastrous Outcomes

Based on what we have seen so far, an inadequate payment infrastructure can lead to: 

  • Transaction Failures: System overloads causing declined or failed transactions, leading to lost sales and frustrated customers. 
  • Fraud Exposure: Increased vulnerability to fraudulent activities due to higher transaction volumes, making it harder to detect and prevent fraud effectively. 
  • Regulatory Non-Compliance: Failure to meet compliance standards can result in hefty fines and reputational damage, especially in high-risk industries. 

To avoid all the above, a solid payment infrastructure is essential. 

Transforming Challenges into Assets

Conversely, a robust payment service can: 

  • Enhance Customer Experience: Seamless transactions increase customer satisfaction and loyalty, encouraging repeat business. 
  • Improve Operational Efficiency: Automation and scalability reduce manual intervention and errors, allowing staff to focus on strategic tasks. 
  • Strengthen Market Position: Reliable payment processing sets a business apart in competitive markets, especially during high-stakes periods like Black Friday. 

According to Whop, “globally, $240 billion will be spent online during the 2024 holiday season. This is up 8.4% from 2023 when shoppers spent $222 billion online” (source: Whop, 100+ Black Friday Statistics for 2024.)  Meeting consumer expectations with efficient payment services is crucial to capitalise on this global increased spending opportunity. 

Preventing Fraud in the Age of AI-Driven Scams

The Rising Threat of AI-Driven Fraud

As transaction volumes soar during Black Friday, so does the risk of sophisticated fraud schemes. Cybercriminals are increasingly leveraging artificial intelligence (AI) to execute more effective and widespread attacks. 

According to Signicat’s report, fraud attempts have increased by 80% in the last three years, with identity fraud attempts up by 74% (source: Signicat, Rising Payment Fraud Wave Threatens Consumers, Retailers, and the Payment Sector as Black Friday Approaches). Account takeover (ATO) has become the most common type of fraud affecting both B2C and B2B organizations. Juniper Research estimates that eCommerce fraud will rise from $44.3 billion in 2024 to $107 billion in 2029, a growth of 141% (source: Signicat, Rising Payment Fraud Wave Threatens Consumers, Retailers, and the Payment Sector as Black Friday Approaches.) 

For high-risk, high-revenue industries such as online casinos, forex trading, and adult entertainment, the stakes are even higher. These sectors are prime targets for fraud due to the high transaction values and the regulatory complexities involved. 

How AI is Used by Scammers

AI enables fraudsters to operate on a larger scale and with greater sophistication: 

  • Advanced Phishing Attacks: AI can generate well-crafted emails and messages that mimic legitimate communications, making phishing attempts harder to detect. 
  • Deepfake Technology: Scammers use AI to create realistic images, videos, and voice recordings, potentially impersonating company executives or celebrities to deceive victims. 
  • Synthetic Identities: AI helps create synthetic identities by combining real and fake information, enabling fraudsters to bypass traditional identity verification methods. 

As Richard Horne, chief executive of the U.K.’s National Cyber Security Centre, aptly put it: “The discount period has become prime time for scammers.” (source: Lindsey Choo, Why Black Friday Is A Hotbed For AI Scams—And How To Spot Them, Forbes, November 20, 2024.) 

The Impact on High-Risk Industries

The financial and reputational damage caused by fraud affects both consumers and businesses: 

  • Financial Losses: Unauthorised transactions can lead to significant revenue losses. 
  • Regulatory Penalties: Non-compliance with anti-fraud regulations can result in hefty fines, legal action and further regulatory scrutiny. 
  • Eroded Trust: Customers who experience fraud may lose trust in the business, impacting customer retention and brand reputation. Not to mention they could prevent new customers from using the same service thanks to the widespread reliance on online reviews and word of mouth. 

For industries like online casinos and forex trading, where trust and security are paramount, the implications are severe. A single fraud incident can deter high-value clients and attract regulatory scrutiny. 

Strategies to Combat AI-Driven Fraud

Implement Advanced Fraud Detection Systems 

Utilise AI-driven fraud detection platforms that can: 

  • Analyse Transaction Patterns: Identify anomalies in transaction behaviour in real-time. 
  • Employ Machine Learning: Continuously improve detection capabilities by learning from new fraud patterns. 
  • Incorporate Behavioural Biometrics: Analyse user behaviours such as typing patterns and navigation to detect fraudulent activities. 



Pinar Alpay, Chief Product & Marketing Officer at Signicat, emphasises: 

“More comprehensive security strategies—incorporating facial biometrics, AI-based detection, and continuous monitoring—are crucial to protect both consumers and businesses against this growing and increasingly sophisticated threat.” (source: Signicat, Rising Payment Fraud Wave Threatens Consumers, Retailers, and the Payment Sector as Black Friday Approaches.) 


Multi-Layered Security Approach
 

Adopt a multi-layered security strategy that includes: 

  • Two-Factor Authentication (2FA): Adds an extra layer of security by requiring a second form of verification. 
  • Device Fingerprinting: Identifies unique device attributes to detect unauthorised access. 
  • Regular Security Audits: Assess and update security protocols to stay ahead of emerging threats. 



Employee Training and Awareness
 

Educate staff on the latest fraud tactics: 

  • Awareness Programs: Regular training sessions on identifying phishing attempts and social engineering. 
  • Incident Response Plans: Establish protocols for responding to suspected fraud incidents promptly. 



Collaborate with Experts
 

Partner with cybersecurity firms specialising in high-risk industries: 

  • Customised Solutions: Tailored to address specific vulnerabilities in industries like online gaming and forex trading. 
  • Proactive Monitoring: Continuous surveillance to detect and mitigate threats before they escalate. 

Specialised payment service providers like VIP360 may help with all of the above, read further to find out how. 

VIP360 for Fraud Prevention

VIP360 offers advanced fraud prevention tools designed for high-risk, high-revenue businesses: 

  • Real-Time Monitoring: Detects suspicious activities instantly, allowing for immediate action. 
  • Regulatory Compliance: Ensures adherence to industry-specific regulations, minimising fraud and legal risks. 

By integrating VIP360’s solutions, businesses can enhance their defences against AI-driven fraud without significant operational overhead. 

Strategic Steps for Businesses

Evaluate Current Payment Infrastructure

  • Stress Testing: Simulate Black Friday conditions to identify weaknesses in the payment system. 
  • Compliance Audit: Ensure all regulatory requirements are met to avoid penalties and maintain customer trust. 

Avoiding Dangerous Tech Outages During Black Friday

Tech outages during peak shopping periods can be catastrophic. High-revenue businesses must prioritise infrastructure resilience to prevent downtime that could lead to significant revenue loss. 

 

Implement Edge Computing Solutions 

Alan Conboy, Office of the CTO at Scale Computing, emphasises the importance of edge computing: 

“Instead of only sending and storing data in a centre located hundreds of miles away that every store on the network relies on, retailers should consider the deployment of an IT solution at the edge. A hyperconverged infrastructure (HCI) solution with edge computing capabilities brings a mini data centre directly to each store, while still utilising the larger, off-site data centre. It combines high-performance servers and storage into a single, simple-to-use, on-site data centre that isn’t reliant on external networks, so downtime is no longer an issue.” (source: Alan Conboy, Office of the CTO at Scale Computing, retrieved from Spiceworks, How to Avoid a Tech Blackout on Black Friday.) 

 

Enhance Infrastructure with Redundancy and Resilience 

Steve Moore, Vice President and Chief Security Strategist at Exabeam, advises leveraging advanced security measures: 

“Machine learning security approaches can make it fast and easy to find anomalous and suspicious user and device behaviour… Analysts can detect breaches sooner and reduce the amount of time that attackers are ’dwelling’ in a network environment.”(source: Steve Moore, Vice President and Chief Security Strategist at Exabeam, retrieved from Spiceworks, How to Avoid a Tech Blackout on Black Friday.) 

 

Leverage Cloud and Multi-Cloud Strategies 

Jeff Keyes, VP of Product Marketing at Planview, suggests incorporating chaos into software delivery pipelines: 

“To prepare, all organizations should incorporate a little chaos into their software delivery pipelines to see how quickly they can react to last-minute changes, unpredictable loads, and unexpected failures.” (source: Jeff Keyes, VP of Product Marketing at Planview, retrieved from Spiceworks, How to Avoid a Tech Blackout on Black Friday.) 

The Role of VIP360 in Navigating Black Friday

VIP360 and its rail partners offer a comprehensive payment infrastructure tailored to high-risk, high-revenue businesses. 

Tailored Solutions

  • Scalable Architecture: Designed to handle Black Friday peak loads effortlessly. 
  • Advanced Security Measures: Implements cutting-edge fraud detection and prevention tools. 
  • Regulatory Expertise: Ensures compliance with global and regional regulations. 

Enhancing Competitive Edge

By leveraging VIP360’s infrastructure, businesses can: 

  • Optimize Transaction Speed: Faster processing enhances customer satisfaction. 
  • Reduce Operational Cost: Automation minimises the need for manual oversight. 
  • Expand Global Reach: Support for multiple currencies and payment methods open new markets. 
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Case Study: Turning Potential Disaster into Success

A high-risk online casino experienced frequent transaction failures and fraud attempts during peak periods in previous years. By integrating VIP360’s payment services before Black Friday, they achieved: 

  • Increased uptime: Ensuring customers could enjoy uninterrupted gaming experiences. 
  • Exponential Increase in Sales: Improved customer trust led to higher transaction volumes. 
  • Fast Settlement: Our payment network is continually optimised to find routes that maximise speed of settlement, increasing customer satisfaction and protect revenue.

Conclusion

Black Friday doesn’t have to be a daunting prospect for high-risk, high-revenue businesses. With the right payment services and infrastructure in place, it becomes an opportunity to outperform competitors and achieve significant growth. The UK alone forecasts to spend GBP 7.1 billion on Black Friday, which is 37% up from last year’s spending, and whereby 68% of those purchases will occur online (data source: UK Consumers set to splurge 7.1 billion treating themselves this Black Friday). 

As Adobe forecasts that Cyber Monday will see 30% more payment volume than Black Friday, the importance of a robust payment infrastructure extends beyond a single day (data source: Adobe, 2024 Holiday Shopping Report). 

  

By focusing on scalable, secure, and compliant payment solutions—such as those offered by VIP360—businesses can navigate the complexities of Black Friday with confidence, turning potential challenges into strategic advantages. 

In the rapidly evolving landscape of high-stakes commerce, preparation and the right partnerships are key. As Black Friday approaches, now is the time to assess, adapt, and align your payment services to ensure not just survival but success. 

Your business deserves a reliable payments infrastructure that is built around its specific needs. Get in touch today to find out what our payment solutions experts can do for you and your revenue. 

Disclaimer: 

VIP360 is not licensed by FinCEN or any U.S. state regulatory body and does not offer services to U.S. residents or businesses. The insights shared in this blog are for informational purposes only and should not be interpreted as advice or representation of services within the United States.

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