The global 3D secure payment authentication market size is expected to reach USD 2.76 billion by 2030, growing at a CAGR of 12.2% from 2022 to 2030, according to a new study conducted by Grand View Research, Inc. The rising demand for e-commerce has augmented the use of Card Not Present (CNP) transactions.
Key Industry Insights & Findings from the report:
- The merchant plug-in segment dominated the industry in 2021 owing to its functionality of facilitating 3D secure verifications to assist in preventing credit card fraud.
- The banks application segment dominated the industry in 2021.
- This can be attributed to the rising collaborations and partnerships between banks and 3D secure payment authentication solution providers.
- The North America region led the industry in 2021 and will remain dominant throughout the forecast period due to the increasing CNP frauds across the region.
- However, the Asia Pacific region is estimated to register the fastest CAGR from 2022 to 2030.
Read 130-page market research report, “3D Secure Payment Authentication Market Size, Share & Trends Analysis Report By Component (Merchant Plug-in, Access Control Server), By Application (Merchants & Payment Gateway, Banks), And Segment Forecasts, 2022 – 2030“, published by Grand View Research.
3D Secure Payment Authentication Market Growth & Trends
As a result of such an increase in CNP transactions, the growth in CNP fraud transactions has been observed over the past few years. For instance, according to an end-to-end transaction guarantee platform for online purchases named Vesta, the overall percent of global transactions its system identified as potential fraud ranged between 10 to 13%, with an average value for each fraudulent transaction ranging from USD 126 to USD 155.
Thus, such frauds are creating demand for 3D secure payment authentication solutions across the globe. The benefits offered by 3D secure payment authentication, include liability shift, which shifts liability for fraud-related chargebacks from the merchant to the card issuer protecting the merchants. As a result of such a benefit, it is expected to fuel the growth of the industry over the forecast period. Furthermore, 3D secure payment authentication allows users to choose any medium, including mobile, desktop, or tablet for processing online purchase transactions without compromising on security, which bodes well with the growth of the industry. Furthermore, the increasing partnerships between the banks and 3D secure payment authentication solution providers are expected to drive the industry.
For instance, in May 2022, adevice identity and authentication solutions provider, ENTERSEKT, announced its partnership with Capitec Bank, a retail banking company. This partnership was aimed at implementing ENTERSEKT EMV 3D Secure solution to enhance the security of e-commerce payments and reduce friction for cardholders. The global pandemic has been favorable to industry growth. Nationwide lockdowns and social distancing regulations fueled e-commerce and online shopping, which eventually led to the increased use of CNP and other online payment methods. As a result of increased online CNP frauds during the pandemic, the demand for 3D secure payment authentication was fueled by e-commerce and other merchants to prevent fraud.
3D Secure Payment Authentication Market Segmentation
Grand View Research has segmented the global 3D secure payment authentication market based on component, application, and region:
3D Secure Payment Authentication Market – Component Outlook (Revenue, USD Million, 2017 – 2030)
- Access Control Server
- Merchant Plug-in
3D Secure Payment Authentication Market – Application Outlook (Revenue, USD Million, 2017 – 2030)
- Merchants & Payment Gateway
3D Secure Payment Authentication Market – Regional Outlook (Revenue, USD Million, 2017 – 2030)
- North America
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
List of Key Players of 3D Secure Payment Authentication Market
- GPayments Pty Ltd.
- RSA Security LLC
- Visa Inc.
- Bluefin Payment Systems LLC
- American Express Company
- JCB Co., Ltd.
Check out more related studies published by Grand View Research:
- Face-swiping Payment Market – The global face-swiping payment market size is expected to reach USD 18.46 billion by 2030, expanding at a CAGR of 18.9% from 2022 to 2030, according to a new study conducted by Grand View Research, Inc. The rise in digitalization led by the COVID-19 pandemic and the increasing penetration of the internet across the globe is anticipated to drive market growth.
- Payment Processing Solutions Market – The global payment processing solutions market size is expected to reach USD 98.01 billion by 2027, registering a CAGR of 14.5% from 2020 to 2027, according to a new report by Grand View Research, Inc. The market growth can be attributed to the emergence of digital technology and customers’ demand for immediacy of transactions.
- Digital Payment Market – The global digital payment market size is expected to reach USD 361.30 billion by 2030, expanding at a CAGR of 20.5% over the forecast period, according to a new report by Grand View Research, Inc. The market growth can be attributed to the growing volume of cashless transactions worldwide. According to PwC, a consulting company, the global volume of cashless payments is expected to increase by more than 80% between 2020 and 2025, to nearly 1.9 trillion by 2025 from nearly 1 trillion transactions in 2020.
Browse through Grand View Research’s Next Generation Technologies Industry Research Reports.