The 3D secure payment authentication market is anticipated to reach US$ 1.28 billion in 2023 and record a CAGR of 12.2% between 2023 and 2033. The 3D secure payment authentication market is expected to reach US$ 4.06 billion in 2033. The sector's growth is due to increased online fraud, including identity theft and unauthorized card use.
E-commerce sales and mobile usage are increasing due to smartphone sales and internet usage. The popularity of online shopping portals and the availability of online payment alternatives have led to a considerable surge in online fraud. This factor promotes the adoption of 3D secure payment authentication.
With 3D secure authentication, the likelihood of fraudulent transactions and challenged transactions is decreased. Although the added layer of security might prevent certain transactions from being completed, it does make payments safer, which is anticipated to encourage industry growth.
During the projection period, the target market is projected to be driven by the widespread adoption of 3D secure authentication in consumer electronics, ATMs, POS machines, and other devices.
| Attributes | Details |
|---|---|
| 3D Secure Payment Authentication Market CAGR (From 2023 to 2033) | 12.2% |
| 3D Secure Payment Authentication Market Size (2023) | US$ 1.28 billion |
| 3D Secure Payment Authentication Market Size (2033) | US$ 4.06 billion |
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Hotels and restaurants have quickly embraced new technologies like app-based ordering and computerized table service. Customers may now order and pay more conveniently on various mobile platforms using different payment options.
A substantial amount of hotels, resorts, and tourist attractions now accept online purchases and transactions for services like booking rooms and other things. Online fraud can take place during a reservation transaction. Online booking engines, Online Travel Agencies (OTAs), and direct hotel websites are typically where payments are made.
Hotels are susceptible to online payment scams and malicious activities when they make and receive payments online and accept card transactions through their property management system. As a result, there is a surge in the 3D secure payment authentication market adoption trends.
To be safe while processing online payments, hoteliers and restaurants may need forced authentication, also known as Strong Customer Authentication (SCA), which calls for Two-Factor Authentication (2FA). Frictionless authentication has been added to this new version, which lessens cardholders' hassles while using their cards to make purchases while reducing fraud and boosting the security of online transactions.
Instead of directing the cardholder to added authentication pages, 3D Secure 2 integrates the challenge into the checkout flow, streamlining the authentication flow and enabling hoteliers to process large transactions quickly. In the near future, this is anticipated to accelerate the 3D secure payment authentication market growth.
The use of cashless payments is rising rapidly owing to new payment methods, growth in e-commerce platforms, better broadband connectivity, and new technologies.
According to Razorpay, digital payment transactions increased by 76% in 2021 compared to 2020. Moreover, the Reserve Bank of India (RBI) reported that in 2022, the country's digital payments market is anticipated to reach US$ 700 billion.
Every business sector has recently seen a change owing to digital channels, including social media, dating apps, food delivery, alternate modes of transportation, and vacation rentals. Due to the lockdown, more individuals are using mobile applications. People are buying everything from groceries to cars using internet applications.
It is anticipated that these factors would lead to a significant 3D secure payment authentication market expansion during the projection period. In order to gain profit from rising in-app and online marketplace transactions, fraudsters have changed their methods. Apart from the clients, there are numerous companies involved in the e-commerce transaction process at different stages, and each one of them could serve as a weakness or entry point for criminal activity.
It is anticipated that a strong payment security framework would be developed to establish strict guidelines for identifying and stopping fraud in digital transaction systems. By allowing customers to pay with credit/debit cards, mobile money, e-Wallets, and other means while maintaining the necessary flexibility and security, businesses can expand their clientele. In the near future, this is anticipated to spur the adoption of 3D secure payment authentications.
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Over the past few decades, various nationalized banks and governments have created high- and low-value payment systems based on security norms. There is an increasing need for standardization and automation across intra-bank, and inter-bank networks between countries as payment systems develop independently.
This is anticipated to restrict the uptake of 3D secure payment authentication services and regularly calls for the collection and rectification of human data. Key corporations and banks with subsidiaries and branches can transfer money to target countries through intra-bank transactions.
Beneficiaries receive instant credit to their overseas operation accounts, or payments are sent to their banks through bilateral transfers or national clearing and settlement processes. The adoption of 3D secure payment authentication methods is probably going to be hampered by the availability of substitutes. This leads to the slowdown of the 3D secure payment authentication market adoption trend.
| Top Component | Merchant Plug-in (MPI) |
|---|---|
| Market Share | 38.85% |
With a market share of more than 38.85% of the total revenue, the merchant plug-in category dominated the 3D secure payment authentication market. In order to perform 3D secure pay authentication and verification of credit and debit cards, one of the most crucial components is the merchant plug-in, which is why it is anticipated to expand throughout the forecast period. The rising use and inclusion of merchant plug-ins by various companies in their services are responsible for the rise of the merchant plug-in segment.
Over the projection period, the access control server segment is predicted to develop at a considerable rate. Issuing banks process cardholder authentication needs using the access control server. A rise in the demand for identity verification during the processing of digital transactions as a result of an increase in identity fraud is one aspect that can be expected to contribute to the expansion of the access control segment.
The access control server software module allows cardholders to verify their identity using a password they choose on their own, enhancing the security of credit card transactions. Several businesses, including AsiaPay Technology, Worldline, and GPayments Pty. Ltd., among others, are providing the solution. This results in the escalation of the 3D secure payment authentication market trends.
| Top Application | Banks |
|---|---|
| Market Share | 59.7% |
With a revenue share of about 59.70%, the bank’s segment had a considerable revenue share. The banking sector's growing digitalization is to blame for the segment's 3D secure payment authentication market expansion.
Banks can access the transactional and behavioral histories of their clients through 3D secure payment authentication, which also exposes details about the users' gadgets. Over the course of the forecast period, the aforementioned elements should support segment growth.
Over the projected period, the merchants & payment gateway segment is anticipated to increase at a robust pace. The global uptake of 3D secure payment authentication is predicted to fuel the segment's expansion.
Growth in the segment is predicted to be fueled by these developments and the adoption of 3D secure payment authentication for fraud prevention.
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With a revenue share of more than 28.90%, North America dominated the 3D secure payment authentication market globally. The leading market share is held by North America, which is anticipated to maintain its control in the years to come. The United States has a considerable e-commerce market in the world, and it may soon open up a lot of new chances. It offers a comparatively simple payment environment, with credit and debit cards predominating.
The increase in Card Not Present (CNP) scams across North America is to blame for the surge. To combat CNP fraud, retailers all around the United States and Canada are implementing 3D secure payment authentication more frequently.
Leading worldwide credit cards including Mastercard, Visa, Discover, American Express, and Diners are thought to have their headquarters in this nation. As a result, North America has a high level of integration with 3D secure payment authentication. Another significant aspect driving the expansion of the region is the 3D secure payment authentication market hegemony of companies providing 3DS solutions there.
Even if e-commerce adoption and mobile payments are two trends where Asia Pacific is perceived as leading, the region is also regarded as one of the most fragmented in terms of digital payments. The significant retail e-commerce market in Asia Pacific is China, which also serves as a key market for mobile commerce and the 3D secure payment authentication market.
The region with a significant growth rate is anticipated to be Asia Pacific. The region's market growth is anticipated to be fuelled by the region's expanding population and increased use of CNP for processing contactless payments.
Well-known businesses, like Visa Inc., have released instructions for implementing EMV 3DS in Asia Pacific. Throughout the course of the forecast period, the region's increasing payment and CNP frauds are anticipated to fuel 3D secure payment authentication market expansion in Asia Pacific.
During the forecast period, it is expected to record a significant CAGR in Europe's 3D secure payment authentication market. At the moment, only the United Kingdom in Europe supports 3D secure pay authentication and Address Verification Services (AVS).
It is one of the only nations in the world where allowing 3D secure pay authentication has improved overall transactions. The internet retail industry in the United Kingdom is established, and most consumers choose to pay for their purchases with bank-affiliated cards.
The adoption rate of 3D secure payment authentication is high (between 83 and 86 percent approval) in nations like Finland, Sweden, Denmark, and Norway. When it comes to payment options, Germany is one of the economies with even more fragmentation. The bulk of online transactions is made using non-credit card payment options like Giropay, SOFORT, and SEPA direct debit.
Due to the existence of multiple strong players, the 3D secure payment authentication market is moderately fragmented. As part of their efforts to expand their offers, industry players target initiatives for new product development.
Companies are engaged in strategic planning, including alliances and collaborations, to expand their market presence. In order to expand 3D secure authentication technologies and lower CNP fraud globally, businesses are working with merchants.
Recent Development:
| Date | May 2021 |
|---|---|
| Company | Netcetera and Nok Nok Labs |
| Details | In order to solve PSD2-SCA and 3DS 2.x protocols compliance, Netcetera, and Nok Nok Labs formed cooperation in May 2021 to provide delegated authentication solutions to merchants and payment providers. |
| Date | August 2019 |
|---|---|
| Company | mSIGNIA and Signifyd |
| Details | In order to ensure more payments using an analytically improved, EMV 3DS-compliant merchant environment, mSIGNIA, and Signifyd teamed in August 2019 to develop a new generation of secure payment services for PSD2 Strong Consumer Authentication (SCA). |
| Date | January 2021 |
|---|---|
| Company | Omise |
| Details | Payment service provider Omise implemented the EMV 3DS 2.2 protocol in January 2021, making Omise one of the first PSP customers to do so. Omise implemented the Netcetera 3-D Secure Server for protected online payment transactions in Asia Pacific. |
| Date | January 2022 |
|---|---|
| Company | Everlink Payment Services Inc. |
| Details | Everlink Payment Services Inc. announced in January 2022 that it had successfully completed 3D secure certification. As a result of accreditation, it launched a 3D Secure Payment Authentication Service through VISA Consumer Authentication Service (VCAS) for both Mastercard and Visa card products. The company seeks to lower CNP transaction fraud with the introduction of the 3D Secure Payment Authentication Service. |
| Date | May 2019 |
|---|---|
| Company | Uber Technologies Inc. |
| Details | Uber Technologies, Inc. chose the payments platform Adyen in May 2019 to use their 3D Secure solution. Uber Technologies, Inc. wanted to give its consumers a simple and satisfying payment experience, therefore it made this choice. |
| Date | September 2020 |
|---|---|
| Company | Visa Canada |
| Details | Visa Canada announced the expansion of Click to Pay in the market of Canada in September 2020 to enable customers to conduct secure, rapid transactions across numerous stores and platforms. Customers that use Click to Pay may make quick, safe payments online. It is an EMV Secure Remote Commerce solution. |
The market is valued at US$ 1.28 billion in 2023.
The market is estimated to develop at a CAGR of 12.2%.
With a revenue share of more than 28.90%, North America dominated the market globally.
The market is estimated to reach US$ 4.06 billion by 2033.
The availability of substitutions is likely to stymie the market growth.
1. Executive Summary | 3D Secure Payment Authentication Market
1.1. Global Market Outlook
1.2. Demand-side Trends
1.3. Supply-side Trends
1.4. Technology Roadmap Analysis
1.5. Analysis and Recommendations
2. Market Overview
2.1. Market Coverage / Taxonomy
2.2. Market Definition / Scope / Limitations
3. Market Background
3.1. Market Dynamics
3.1.1. Drivers
3.1.2. Restraints
3.1.3. Opportunity
3.1.4. Trends
3.2. Scenario Forecast
3.2.1. Demand in Optimistic Scenario
3.2.2. Demand in Likely Scenario
3.2.3. Demand in Conservative Scenario
3.3. Opportunity Map Analysis
3.4. Investment Feasibility Matrix
3.5. PESTLE and Porter’s Analysis
3.6. Regulatory Landscape
3.6.1. By Key Regions
3.6.2. By Key Countries
3.7. Regional Parent Market Outlook
4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033
4.1. Historical Market Size Value (US$ Million) Analysis, 2018 to 2022
4.2. Current and Future Market Size Value (US$ Million) Projections, 2023 to 2033
4.2.1. Y-o-Y Growth Trend Analysis
4.2.2. Absolute $ Opportunity Analysis
5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Component
5.1. Introduction / Key Findings
5.2. Historical Market Size Value (US$ Million) Analysis By Component, 2018 to 2022
5.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Component, 2023 to 2033
5.3.1. Access Control Server
5.3.2. Merchant Plug-in
5.3.3. Others
5.4. Y-o-Y Growth Trend Analysis By Component, 2018 to 2022
5.5. Absolute $ Opportunity Analysis By Component, 2023 to 2033
6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application
6.1. Introduction / Key Findings
6.2. Historical Market Size Value (US$ Million) Analysis By Application, 2018 to 2022
6.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Application, 2023 to 2033
6.3.1. Banks
6.3.2. Merchants & Payment Gateway
6.4. Y-o-Y Growth Trend Analysis By Application, 2018 to 2022
6.5. Absolute $ Opportunity Analysis By Application, 2023 to 2033
7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region
7.1. Introduction
7.2. Historical Market Size Value (US$ Million) Analysis By Region, 2018 to 2022
7.3. Current Market Size Value (US$ Million) Analysis and Forecast By Region, 2023 to 2033
7.3.1. North America
7.3.2. Latin America
7.3.3. Europe
7.3.4. Asia Pacific
7.3.5. Middle East & Africa (MEA)
7.4. Market Attractiveness Analysis By Region
8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
8.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022
8.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
8.2.1. By Country
8.2.1.1. The USA
8.2.1.2. Canada
8.2.2. By Component
8.2.3. By Application
8.3. Market Attractiveness Analysis
8.3.1. By Country
8.3.2. By Component
8.3.3. By Application
8.4. Key Takeaways
9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
9.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022
9.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
9.2.1. By Country
9.2.1.1. Brazil
9.2.1.2. Mexico
9.2.1.3. Rest of Latin America
9.2.2. By Component
9.2.3. By Application
9.3. Market Attractiveness Analysis
9.3.1. By Country
9.3.2. By Component
9.3.3. By Application
9.4. Key Takeaways
10. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
10.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022
10.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
10.2.1. By Country
10.2.1.1. Germany
10.2.1.2. United Kingdom (UK)
10.2.1.3. France
10.2.1.4. Spain
10.2.1.5. Italy
10.2.1.6. Rest of Europe
10.2.2. By Component
10.2.3. By Application
10.3. Market Attractiveness Analysis
10.3.1. By Country
10.3.2. By Component
10.3.3. By Application
10.4. Key Takeaways
11. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
11.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022
11.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
11.2.1. By Country
11.2.1.1. China
11.2.1.2. Japan
11.2.1.3. South Korea
11.2.1.4. Singapore
11.2.1.5. Thailand
11.2.1.6. Indonesia
11.2.1.7. Australia
11.2.1.8. New Zealand
11.2.1.9. Rest of Asia Pacific
11.2.2. By Component
11.2.3. By Application
11.3. Market Attractiveness Analysis
11.3.1. By Country
11.3.2. By Component
11.3.3. By Application
11.4. Key Takeaways
12. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
12.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022
12.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
12.2.1. By Country
12.2.1.1. GCC Countries
12.2.1.2. South Africa
12.2.1.3. Israel
12.2.1.4. Rest of MEA
12.2.2. By Component
12.2.3. By Application
12.3. Market Attractiveness Analysis
12.3.1. By Country
12.3.2. By Component
12.3.3. By Application
12.4. Key Takeaways
13. Key Countries Market Analysis
13.1. USA
13.1.1. Pricing Analysis
13.1.2. Market Share Analysis, 2022
13.1.2.1. By Component
13.1.2.2. By Application
13.2. Canada
13.2.1. Pricing Analysis
13.2.2. Market Share Analysis, 2022
13.2.2.1. By Component
13.2.2.2. By Application
13.3. Brazil
13.3.1. Pricing Analysis
13.3.2. Market Share Analysis, 2022
13.3.2.1. By Component
13.3.2.2. By Application
13.4. Mexico
13.4.1. Pricing Analysis
13.4.2. Market Share Analysis, 2022
13.4.2.1. By Component
13.4.2.2. By Application
13.5. Germany
13.5.1. Pricing Analysis
13.5.2. Market Share Analysis, 2022
13.5.2.1. By Component
13.5.2.2. By Application
13.6. UK
13.6.1. Pricing Analysis
13.6.2. Market Share Analysis, 2022
13.6.2.1. By Component
13.6.2.2. By Application
13.7. France
13.7.1. Pricing Analysis
13.7.2. Market Share Analysis, 2022
13.7.2.1. By Component
13.7.2.2. By Application
13.8. Spain
13.8.1. Pricing Analysis
13.8.2. Market Share Analysis, 2022
13.8.2.1. By Component
13.8.2.2. By Application
13.9. Italy
13.9.1. Pricing Analysis
13.9.2. Market Share Analysis, 2022
13.9.2.1. By Component
13.9.2.2. By Application
13.10. China
13.10.1. Pricing Analysis
13.10.2. Market Share Analysis, 2022
13.10.2.1. By Component
13.10.2.2. By Application
13.11. Japan
13.11.1. Pricing Analysis
13.11.2. Market Share Analysis, 2022
13.11.2.1. By Component
13.11.2.2. By Application
13.12. South Korea
13.12.1. Pricing Analysis
13.12.2. Market Share Analysis, 2022
13.12.2.1. By Component
13.12.2.2. By Application
13.13. Singapore
13.13.1. Pricing Analysis
13.13.2. Market Share Analysis, 2022
13.13.2.1. By Component
13.13.2.2. By Application
13.14. Thailand
13.14.1. Pricing Analysis
13.14.2. Market Share Analysis, 2022
13.14.2.1. By Component
13.14.2.2. By Application
13.15. Indonesia
13.15.1. Pricing Analysis
13.15.2. Market Share Analysis, 2022
13.15.2.1. By Component
13.15.2.2. By Application
13.16. Australia
13.16.1. Pricing Analysis
13.16.2. Market Share Analysis, 2022
13.16.2.1. By Component
13.16.2.2. By Application
13.17. New Zealand
13.17.1. Pricing Analysis
13.17.2. Market Share Analysis, 2022
13.17.2.1. By Component
13.17.2.2. By Application
13.18. GCC Countries
13.18.1. Pricing Analysis
13.18.2. Market Share Analysis, 2022
13.18.2.1. By Component
13.18.2.2. By Application
13.19. South Africa
13.19.1. Pricing Analysis
13.19.2. Market Share Analysis, 2022
13.19.2.1. By Component
13.19.2.2. By Application
13.20. Israel
13.20.1. Pricing Analysis
13.20.2. Market Share Analysis, 2022
13.20.2.1. By Component
13.20.2.2. By Application
14. Market Structure Analysis
14.1. Competition Dashboard
14.2. Competition Benchmarking
14.3. Market Share Analysis of Top Players
14.3.1. By Regional
14.3.2. By Component
14.3.3. By Application
15. Competition Analysis
15.1. Competition Deep Dive
15.1.1. GPayments Pty Ltd.
15.1.1.1. Overview
15.1.1.2. Product Portfolio
15.1.1.3. Profitability by Market Segments
15.1.1.4. Sales Footprint
15.1.1.5. Strategy Overview
15.1.1.5.1. Marketing Strategy
15.1.2. Broadcom
15.1.2.1. Overview
15.1.2.2. Product Portfolio
15.1.2.3. Profitability by Market Segments
15.1.2.4. Sales Footprint
15.1.2.5. Strategy Overview
15.1.2.5.1. Marketing Strategy
15.1.3. Mastercard
15.1.3.1. Overview
15.1.3.2. Product Portfolio
15.1.3.3. Profitability by Market Segments
15.1.3.4. Sales Footprint
15.1.3.5. Strategy Overview
15.1.3.5.1. Marketing Strategy
15.1.4. RSA Security LLC
15.1.4.1. Overview
15.1.4.2. Product Portfolio
15.1.4.3. Profitability by Market Segments
15.1.4.4. Sales Footprint
15.1.4.5. Strategy Overview
15.1.4.5.1. Marketing Strategy
15.1.5. Modirum
15.1.5.1. Overview
15.1.5.2. Product Portfolio
15.1.5.3. Profitability by Market Segments
15.1.5.4. Sales Footprint
15.1.5.5. Strategy Overview
15.1.5.5.1. Marketing Strategy
15.1.6. Visa Inc
15.1.6.1. Overview
15.1.6.2. Product Portfolio
15.1.6.3. Profitability by Market Segments
15.1.6.4. Sales Footprint
15.1.6.5. Strategy Overview
15.1.6.5.1. Marketing Strategy
15.1.7. Bluefin Payment Systems LLC
15.1.7.1. Overview
15.1.7.2. Product Portfolio
15.1.7.3. Profitability by Market Segments
15.1.7.4. Sales Footprint
15.1.7.5. Strategy Overview
15.1.7.5.1. Marketing Strategy
15.1.8. Decta
15.1.8.1. Overview
15.1.8.2. Product Portfolio
15.1.8.3. Profitability by Market Segments
15.1.8.4. Sales Footprint
15.1.8.5. Strategy Overview
15.1.8.5.1. Marketing Strategy
15.1.9. American Express Company
15.1.9.1. Overview
15.1.9.2. Product Portfolio
15.1.9.3. Profitability by Market Segments
15.1.9.4. Sales Footprint
15.1.9.5. Strategy Overview
15.1.9.5.1. Marketing Strategy
15.1.10. JCB Co., Ltd.
15.1.10.1. Overview
15.1.10.2. Product Portfolio
15.1.10.3. Profitability by Market Segments
15.1.10.4. Sales Footprint
15.1.10.5. Strategy Overview
15.1.10.5.1. Marketing Strategy
16. Assumptions & Acronyms Used
17. Research Methodology
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3D Secure Payment Authentication Market
