3D Secure Payment Authentication Market Dynamics - 2021 to 2031
The 3D secure payment authentication market size is expected to grow from US$ 1.30 billion in 2023 to US$ 3.48 billion by 2031; it is estimated to grow at a CAGR of 13.1% from 2023 to 2031. The 3D secure payment authentication market includes growth prospects owing to the current 3D secure payment authentication market trends and their foreseeable impact during the forecast period. The 3D secure payment authentication market is growing due to increasing payment frauds and the huge growth of the e-commerce industry.
3D Secure Payment Authentication Market Analysis
3D secure payment authentication is an authentication method that provides an additional layer of authentication for online payment transactions, protecting against fraudulent actors. This can involve entering a password or receiving a special code on your phone. 3D secure payment authentication helps prevent fraud and keeps transactions safer. 3D secure payment authentication is widely used by online retailers and banks to protect both buyers and sellers from unauthorized transactions.
3D Secure Payment Authentication Market Industry Overview
- The 3D Secure payment authentication safeguards online purchases. The 3D Secure payment authentication industry is growing at a rapid pace as more businesses and customers want extra protection against fraud.
- Companies that provide 3D Secure solutions are in high demand because they help keep online transactions secure. As online shopping continues to increase, the 3D Secure market is expected to keep growing, too.
3D Secure Payment Authentication Market Driver
Increasing Payment Frauds To Drive The 3D Secure Payment Authentication Market
- The surge in payment fraud has become a significant concern for businesses and consumers. As online transactions continue to grow, fraudsters are exploiting vulnerabilities in payment systems, leading to an increase in unauthorized transactions and identity theft. The increasing adoption and preference for online transactions have exposed banks to a higher risk of cyber threats. The volume of fraud is growing at a rapid pace. For instance, according to PayU, losses caused by online payment fraud will exceed US$ 206 billion between 2021 and 2025. Further, according to the same source, merchants are experiencing a 9% average year-over-year increase in the volume of fraud attacks every month.
- In response to the growing number of payment frauds, businesses are increasingly adopting 3D Secure payment authentication solutions. 3D Secure adds an additional layer of security to online payments by requiring cardholders to authenticate their identity through methods such as entering a password or receiving a one-time code via SMS or email. This extra step helps verify that the person making the transaction is a legitimate cardholder, reducing the risk of fraudulent activities.
- Thus, increasing payment frauds will drive the 3D secure payment authentication market growth.
3D Secure Payment Authentication Market Report Segmentation Analysis
- Based on the component, the 3D secure payment authentication market is segmented into access control servers, merchant plug-ins, and others. The merchant plug-in segment is expected to hold a substantial 3D secure payment authentication market share in 2023.
- Merchant plug-in facilitates 3DS transactions and prevents merchants from credit card fraud. Merchant plug-in allows merchants to integrate their online payment processing platform or website with 3DS protocol to facilitate authentication of cardholders and transactions.
3D Secure Payment Authentication Market Share Analysis By Geography
The scope of the 3D secure payment authentication market is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is experiencing rapid growth and is anticipated to hold a significant 3D secure payment authentication market share. With more people shopping online than ever before, businesses in North America are prioritizing security to protect against fraud. Moreover, North America has a presence of a huge number of 3D secure payment authentication providers. Some of the key North American 3D secure payment authentication providers are Broadcom Inc., Mastercard Incorporated, RSA Security LLC, and Visa Inc, among others.
3D Secure Payment Authentication Market Report Scope
The "3D Secure Payment Authentication Market Analysis" was carried out based on component, application, and geography. On the basis of components, the market is segmented into access control servers, merchant plug-ins, and others. On the basis of application, the market is segmented into banks and merchants & payment gateway. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
3D Secure Payment Authentication Market News and Recent Developments
Companies adopt inorganic and organic strategies such as mergers and acquisitions in the 3D secure payment authentication market. A few recent key market developments are listed below:
- In February 2023, PayU announced the launch of a 3D Secure 2.0 SDK authentication service for Indian merchants. 3DS 2.0 SDK provides lowered latency and a 40% reduction in checkout time.
[Source: PayU, Press Release]
- In July 2023, PayTabs Group announced a strategic agreement with Modirum. The alliance between the two firms aimed to offer flexible, robust and cost-effective EMV 3D secure authentication solutions for PayTabs merchants, banks, and processors across the Kingdom of Saudi Arabia.
[Source: PayTabs Group, Press Release]
3D Secure Payment Authentication Market Report Coverage & Deliverables
The 3D secure payment authentication market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. The market report "3D Secure Payment Authentication Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-
- Market size & forecast at global, regional, and country levels for all the key market segments covered under the scope.
- Market dynamics such as drivers, restraints, and key opportunities.
- Key future trends.
- Detailed PEST & SWOT analysis
- Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
- Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.
- Detailed company profiles.
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Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
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Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
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The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.