Global 3D Secure Payment Authentication Market Size, Share & Industry Trends Analysis Report By Application (Banks and Merchants & Payment Gateway), By Component (Merchant Plug-in, Access Control Server), By Regional Outlook and Forecast, 2022 - 2028
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Get in-depth analysis of the COVID-19 impact on the 3D Secure Payment Authentication Market
Market Report Description
The Global 3D Secure Payment Authentication Market size is expected to reach $2 billion by 2028, rising at a market growth of 11.6% CAGR during the forecast period.
A security protocol called 3D secure is utilized to verify user identities. In situations where a card is not present, this adds an additional degree of security for payment card transactions. It was created to make it possible for a cardholder to prove their identity in order to stop payment fraud, thwart unlawful transactions, and lower chargebacks.
By authenticating the cardholder, 3D secure authentication aims to add a step to the financial authorization procedure. Extensible Markup Language (XML) communications with client authentication are sent via the Secure Sockets Layer (SSL) protocol, which provides digital certificates to verify the identities of all parties engaged in the transaction. Maximum security is therefore ensured.
The most recent iteration of this protocol, which was introduced in 2015, encourages a less obtrusive authentication procedure to lessen cart abandonment, which was a problem with the original 3D secure, which required customers to visit the issuing bank's website to validate transactions.
In order to confirm the legitimacy of the transaction, retailers are now required to submit authentication data together with payment card information. Unless the issuer discovers a cause to doubt the legitimacy of the transaction, this process happens invisibly to the user and verifies the payment.
COVID-19 Impact Analysis
The market for 3D secure payment authentication is expanding as a result of payment service providers (PSPs), retailers, and banks quickly adopting the 3D secure authentication framework to combat this. Additionally, the COVID-19 pandemic has caused banks to accelerate their digital transformation efforts, enabling their consumers to make payments online. This element is having a positive impact on the methods of online payment and will boost the uptake of authentication technologies. The market has a fantastic opportunity to improve and promote authentication technology at a faster rate due to the growing trend toward digital banking solutions.
Market Growth Factors
Liability Of 3D Secure For Chargebacks
A chargeback disagreement and liability will result if a cardholder does not recognise a transaction on one's account or does not receive the item they ordered. As previously stated, the card issuer is now responsible for fraudulent transactions. That implies that they are unable to charge back the merchant automatically. This advantage of 3D secure is driving widespread usage and aiding in market expansion.
Increase In Online Sales
E-commerce is the terminology used to describe the internet channel used by business owners to sell their goods and services to customers. Over the past few years, e-commerce has rapidly increased as a result of smartphones becoming more widely used and quicker internet connectivity. The e-commerce market's expansion has increased the use of card payments, which has increased the demand for 3D secure authentication and increased market growth.
Market Restraining Factor
Growth slowed due to the lack of worldwide standards and cross-border transactions.
Despite the benefits of 3D secure cards like Visa Verified and Master Card Secure, there are a number of restrictions on how they can be used in commercial transactions. Over the past few decades, a number of nationalized banks and governments have created high- and low-value payment systems on the basis of security norms. As a result, the adoption of 3D secure pay authentication systems is likely to be hampered by the availability of alternative options and the absence of well-defined standards.
Based on the component, the market for 3D secure payment authentication is divided into access control servers, merchant plug-ins, and others. The merchant plug-in segment held the largest revenue share in 2021 globally. One of the most crucial components for 3D secure pay authentication and credit and debit card verification, merchant plug-in is anticipated to increase during the forecast period. The increased acceptance and inclusion of merchant plug-ins in the services by various companies are responsible for the rise of the merchant plug-in segment.
Based on the application, the 3D secure payment authentication industry is classified into banks, merchants, and payment gateways. In 2021, the merchants & payments gateway garnered the significant revenue share in the market. The global uptake of 3D secure payment authentication is predicted to fuel the segment's expansion. Cart abandonment rates have also decreased as a result of the advancement of 3D secure technology to 3D secure 2.0. Thus, it is projected that such developments and the adoption of 3D secure for the purpose of preventing fraud will fuel segment expansion.
|Market size value in 2021||USD 967.1 Million|
|Market size forecast in 2028||USD 2 Billion|
|Historical Period||2018 to 2020|
|Forecast Period||2022 to 2028|
|Revenue Growth Rate||CAGR of 11.6% from 2022 to 2028|
|Number of Pages||154|
|Number of Tables||250|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling|
|Segments covered||Component, Application, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Based on geography, the market is classified into North America, Europe, Asia Pacific, and LAMEA. The market for 3D secure payment authentication was dominated by North America in 2021, with the largest revenue share, worldwide. 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. A significant contributor to the growth of the region is also the market companies' dominance in the region that offer 3DS solutions.
Free Valuable Insights: Global 3D Secure Payment Authentication Market size to reach USD 2 Billion by 2028
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Mastercard, Inc., Broadcom, Inc. (CA Technologies, Inc.), American Express Company, Visa, Inc., Bluefin Payment Systems LLC, Decta Limited, GPayments Pty Ltd. (Neurocom Group), Modirum, JCB Co., Ltd., and RSA Security LLC (Symphony Technology Group)
Strategies deployed in 3D Secure Payment Authentication Market
- Nov-2022: Mastercard came into partnership with Network International, the leading enabler of digital commerce in the Middle East and Africa (MEA). Through this partnership, companies would launch 3-D Secure (3DS) 2 authentication solutions for UAE merchants and beyond for application in e-commerce transactions. The advanced solution is enhanced by Mastercard’s cutting-edge Smart Interface product.
- Nov-2022: Bluefin took over TECS Payment Systems, a global provider of omnichannel payment solutions to acquirers, payment service providers, and POS system providers. This acquisition would broaden the global reach of both organizations. Additionally, Bluefin's customers would obtain SmartPOS abilities along with omnichannel payments that would combine the data security suite and the company’s existing payments.
- Aug-2022: Bluefin signed a partnership with Etix, an international web-based ticketing service provider for the entertainment, travel, and sports industries. This partnership would assist Bluefin's ticketing client's integrated payment processing by supporting it with PCI-Validated point-to-point encryption (P2PE).
- Aug-2022: DECTA came into partnership with Crassula, a provider of cloud-first fintech software. Through this partnership, the companies are focused on delivering a spectrum of financial solutions for Fintech startups. Along with this, non-banking financial institutions and banks would seek to combine fintech tools into their regular operations.
- Aug-2022: American Express unveiled American Express Global Pay, a new digital solution. This solution aimed to allow U.S. companies to safely make domestic as well as international business-to-business (B2B) payments.
- Jun-2022: Mastercard came into a partnership with PayQuicker, an innovative financial technology leader in the global payouts market. This partnership aimed to provide user-branded virtual and physical cards, involving secured bank accounts and mobile wallet functionality, via a single integration point.
- May-2022: Mastercard formed a partnership with HyperPay, an e-commerce payment services provider. This partnership aimed to accelerate the adoption of digital payment solutions in the Middle East and North Africa (MENA). In addition, the companies aimed to assist businesses, governments, and SMEs in the region move from cash to digital.
- Jun-2021: Mastercard took over Ekata, Inc., a provider of global identity verification solutions. Through this Acquisition, companies would deliver uniform experiences as well as make sure of security, customer privacy, and control. Moreover, Mastercard would focus on developing both companies' identity capabilities to build a safer, seamless way for consumers.
- Jun-2021: Visa formed a partnership with Saudi Payments, owned by the Saudi Central Bank (SAMA). This partnership aimed at introducing a low-cost mobile acceptance solution. The latest ‘Tap to Phone’ solution would operate via mada, Saudi Arabia’s national payments network, to allow merchants, especially small and micro businesses (SMBs) in Saudi Arabia, to accept contactless payments through their smartphone devices utilizing Near-Field-Communication (NFC) technology without investing in a distinct physical device.
Scope of the Study
Market Segments Covered in the Report:
- Merchants & Payment Gateway
- Merchant Plug-in
- Access Control Server
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Mastercard, Inc.
- Broadcom, Inc. (CA Technologies, Inc.)
- American Express Company
- Visa, Inc.
- Bluefin Payment Systems LLC
- Decta Limited
- GPayments Pty Ltd. (Neurocom Group)
- JCB Co., Ltd.
- RSA Security LLC (Symphony Technology Group)
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How valuable will the 3D Secure Payment Authentication Market be in the future?
The global 3D Secure Payment Authentication Market size is expected to reach $2 billion by 2028.
What are the key driving factors and challenges in the 3D Secure Payment Authentication Market?
Liability Of 3D Secure For Chargebacks are driving the market in coming years, however, Growth slowed due to the lack of worldwide standards and cross-border transactions restraints the growth of the market.
What are the major top companies in the competitive landscape?
Mastercard, Inc., Broadcom, Inc. (CA Technologies, Inc.), American Express Company, Visa, Inc., Bluefin Payment Systems LLC, Decta Limited, GPayments Pty Ltd. (Neurocom Group), Modirum, JCB Co., Ltd., and RSA Security LLC (Symphony Technology Group)
At what CAGR is the 3D Secure Payment Authentication Market estimate to grow in the forecast period?
The expected CAGR of the 3D Secure Payment Authentication Market is 11.6% from 2022 to 2028.
Which segment shows a high revenue share of the 3D Secure Payment Authentication Market in 2021?
The Banks segment acquired maximum revenue share in the Global 3D Secure Payment Authentication Market by Application in 2021 thereby, achieving a market value of $1.2 billion by 2028.
Which region dominated the 3D Secure Payment Authentication Market in 2021?
The North America market dominated the Global 3D Secure Payment Authentication Market by Region in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $680.2 million by 2028.