3D Secure Payment Authentication Market by Component, Payment Methods, Organization Size, Vertical

Description

List of Tables

[199 Pages Report] The 3D Secure Payment Authentication Market size was estimated at USD 1.35 billion in 2023 and expected to reach USD 1.52 billion in 2024, at a CAGR 12.55% to reach USD 3.11 billion by 2030.

3D (Three Domain) secure payment authentication, often abbreviated as 3DS, refers to a security protocol used to reduce fraud in online credit and debit card transactions and enhance the security of digital payments. This authentication is achieved by adding an additional layer of verification before a transaction is approved. When a cardholder makes a purchase on a site that supports 3DS, after they enter their card information, they are usually redirected to their card issuer's 3DS interface. They must verify their identity, often by entering a password, responding to a text message, or using biometric recognition. 3D secure aims to prevent the unauthorized use of cards and protect the merchant from exposure to fraud by verifying the cardholder's identity. The growth of the 3D secure payment authentication market is primarily driven by the escalating concern for security in online transactions. The rise in online shopping and the subsequent need for secure payment gateways are significant growth catalysts for the market. However, the market faces challenges, including technical complexities and possible consumer friction due to additional authentication steps that might lead to an increased rate of cart abandonment. Resistance to change among some merchants, who may be concerned about the implementation costs and lack of universal standards, also poses significant obstacles to market expansion. Despite the restraining factors, leveraging emerging technologies, including artificial intelligence, provides opportunities for enhanced security features. With ongoing digitalization efforts by governments, the demand for secure and reliable online payment solutions presents a strong future landscape for the expansion of the 3D secure payment authentication market.

KEY MARKET STATISTICS
Base Year [2023]	USD 1.35 billion
Estimated Year [2024]	USD 1.52 billion
Forecast Year [2030]	USD 3.11 billion
CAGR (%)	12.55%

Component: High preferences for access control server to minimize friction during the authentication process

The access control server (ACS) is a vital component within the 3D secure payment authentication framework. Its primary function is to validate the cardholder's identity during an online transaction through various authentication methods, which can include passwords, biometrics, or one-time codes. The need for an ACS arises from the imperative to enhance transaction security and reduce the likelihood of fraudulent activity. The merchant plug-in (MPI) is another critical element of the 3D secure ecosystem. It acts as an interface between the merchant and the ACS. The MPI's role is to initiate the authentication process by gathering card details from the shopper and forwarding them to the ACS. For merchants, the MPI is essential for ensuring compliance with payment networks' requirements and facilitating secure transactions.

Payment Methods: Rising popularity of digital wallets among younger generation

A popular payment method, credit cards offer consumers the ability to make purchases on credit, deferring payment to a later date. Credit card transactions are authenticated through 3D secure protocols, providing an additional layer of security by requiring a password or biometric authentication. This safeguard protects both the cardholder and the issuer from fraudulent transactions. Debit cards allow customers to pay for goods and services directly from their bank accounts. Similar to credit cards, debit cards can utilize 3D secure authentication to verify the cardholder's identity and minimize the risk of unauthorized transactions. This enhanced verification process is crucial for maintaining the integrity of direct bank payments. With the rise of mobile and electronic commerce, digital wallets have emerged as a convenient form of payment. Users can link their credit, debit, or even bank accounts to a digital wallet platform. 3D secure authentication can also be integrated with digital wallet transactions, offering a streamlined yet secure payment process that leverages encryption and tokenization technologies.

Organization Size: Growing adoption of 3DS in large scale enterprises with scalability and comprehensive features

Large scale enterprises typically handle a significant volume of transactions on a daily basis. They require robust, scalable, and secure payment authentication systems to protect against fraud and ensure customer trust. Enterprises of this scale often prefer 3D secure solutions that offer advanced features such as risk-based authentication, which can intelligently assess the risk level of each transaction and provide a frictionless experience for users. Small & medium enterprises (SMEs) have different needs compared to large scale enterprises. They tend to focus on cost-effective 3DS solutions that are straightforward to implement and maintain. Given their size, SMEs may be susceptible to the impacts of fraud, so a secure payment authentication system is critical.

Vertical: Need for high throughput and user-friendly 3D secure solutions in the travel and hospitality industry

For financial institutions, the requirement for 3D secure payment authentication is paramount to maintain the integrity of transactions and customer trust. Banks and payment service providers are foremost in implementing this security feature to combat fraud and comply with regulatory standards such as PSD2 in Europe. Financial institutions prioritize robust security features to protect customer data and reduce the incidence of fraudulent transactions. The preference here is for a seamless user experience integrated with high-level security protocols. The healthcare industry requires 3D secure payment authentication to protect patient data and ensure the confidentiality of transactions made for various health services and products, including pharmaceuticals. The retail sector utilizes 3D secure payment authentication to secure online transactions and bolster consumer confidence, which is essential for e-commerce platforms. Retailers require a balance between stringent security and streamlined checkout processes to minimize cart abandonment while safeguarding against fraud. The travel and hospitality industry leverages 3D secure authentication to prevent fraudulent bookings and chargebacks owing to the high-value nature of purchases, including airfare and hotel reservations. Businesses in travel and hospitality prioritize 3D secure solutions that can handle high volume and high-value transactions while also ensuring customer convenience during the booking process.

Regional Insights

The market for 3D secure payment authentication in the Americas, particularly in North America, has shown robust growth. This development is attributed to stringent regulatory standards and a high rate of digital payment adoption. The United States and Canada are contributing majorly to this growth, driven by a substantial increase in online transactions and heightened awareness regarding secure payments. Additionally, the strong presence of global players in this region fosters innovation and advances in the 3D secure payment space. In the EMEA region, Europe stands out with significant advancements in 3D secure payment authentication technologies, backed by the regulatory push from the second payment services directive (PSD2) and strong consumer emphasis on transaction security. In the Middle East and Africa, the growth is steady, aided by the digital transformation in the banking sector and the increased emergence of e-commerce platforms keen on adopting secure payment methods to build consumer trust. The Asia-Pacific is experiencing rapid growth in the market for 3D secure payment authentication. Factors contributing to this growth include rising smartphone penetration, a burgeoning e-commerce industry, and governmental initiatives towards cashless societies, particularly in China, India, and Australia.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the 3D Secure Payment Authentication Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the 3D Secure Payment Authentication Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Key Company Profiles

The report delves into recent significant developments in the 3D Secure Payment Authentication Market, highlighting leading vendors and their innovative profiles. These include American Express Company, AsiaPay Limited, Asseco Group, Bluefin Payment Systems LLC, Braintree by PayPal Holdings, Inc., Broadcom Inc., Cardknox Development, Inc. by Fidelity Payment Services, Checkout.com Group, DECTA Limited, Discover Financial Services, Entersekt Proprietary Limited, Fiserv, Inc., GPayments Pty Ltd. by Neurocom Pty Ltd., HDFC Bank Limited, IZealiant Technologies Private Limited by Razorpay Software Private Limited, JCB Co., Ltd., Mastercard Inc., mSIGNIA, Netcetera AG, Oracle Corporation, Pay.com Group, PayU by Rapyd Financial Network Ltd., Ravelin Technology Ltd., RS Software, RSA Security LLC, Shift4 Payments, LLC, Stripe, Inc., UL LLC, and Visa Inc..

Market Segmentation & Coverage

This research report categorizes the 3D Secure Payment Authentication Market to forecast the revenues and analyze trends in each of the following sub-markets:

Component
- Access Control Server
- Merchant Plug-in

Payment Methods
- Credit Cards
- Debit Cards
- Digital Wallets

Organization Size
- Large Scale Enterprise
- Small & Medium Enterprises

Vertical
- Financial Institutions
- Healthcare
- Retail
- Travel & Hospitality

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

The report offers valuable insights on the following aspects:

1. Market Penetration: It presents comprehensive information on the market provided by key players.

2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.

3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.

4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.

5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

1. What is the market size and forecast of the 3D Secure Payment Authentication Market?

2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the 3D Secure Payment Authentication Market?

3. What are the technology trends and regulatory frameworks in the 3D Secure Payment Authentication Market?

4. What is the market share of the leading vendors in the 3D Secure Payment Authentication Market?

5. Which modes and strategic moves are suitable for entering the 3D Secure Payment Authentication Market?

Product Code: MRR-0553F193C580

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Rising concern for security in online transactions
  - 5.1.1.2. Ongoing digitization efforts across economies
- 5.1.2. Restraints
  - 5.1.2.1. High cost of 3DS implementation and resistance to change among merchants
- 5.1.3. Opportunities
  - 5.1.3.1. Advent of artificial intelligence and biometric technology in 3D secure payment authentication systems
  - 5.1.3.2. Increase in online shopping and mobile banking services
- 5.1.4. Challenges
  - 5.1.4.1. Technical complexities and false declines associated with 3D secure payment authentication
5.2. Market Segmentation Analysis
- 5.2.1. Component: High preferences for access control server to minimize friction during the authentication process
- 5.2.2. Payment Methods: Rising popularity of digital wallets among younger generation
- 5.2.3. Organization Size: Growing adoption of 3DS in large scale enterprises with scalability and comprehensive features
- 5.2.4. Vertical: Need for high throughput and user-friendly 3D secure solutions in the travel and hospitality industry
5.3. Market Disruption Analysis
5.4. Porter's Five Forces Analysis
- 5.4.1. Threat of New Entrants
- 5.4.2. Threat of Substitutes
- 5.4.3. Bargaining Power of Customers
- 5.4.4. Bargaining Power of Suppliers
- 5.4.5. Industry Rivalry
5.5. Value Chain & Critical Path Analysis
5.6. Pricing Analysis
5.7. Technology Analysis
5.8. Patent Analysis
5.9. Trade Analysis
5.10. Regulatory Framework Analysis

6. 3D Secure Payment Authentication Market, by Component

6.1. Introduction
6.2. Access Control Server
6.3. Merchant Plug-in

7. 3D Secure Payment Authentication Market, by Payment Methods

7.1. Introduction
7.2. Credit Cards
7.3. Debit Cards
7.4. Digital Wallets

8. 3D Secure Payment Authentication Market, by Organization Size

8.1. Introduction
8.2. Large Scale Enterprise
8.3. Small & Medium Enterprises

9. 3D Secure Payment Authentication Market, by Vertical

9.1. Introduction
9.2. Financial Institutions
9.3. Healthcare
9.4. Retail
9.5. Travel & Hospitality

10. Americas 3D Secure Payment Authentication Market

10.1. Introduction
10.2. Argentina
10.3. Brazil
10.4. Canada
10.5. Mexico
10.6. United States

11. Asia-Pacific 3D Secure Payment Authentication Market

11.1. Introduction
11.2. Australia
11.3. China
11.4. India
11.5. Indonesia
11.6. Japan
11.7. Malaysia
11.8. Philippines
11.9. Singapore
11.10. South Korea
11.11. Taiwan
11.12. Thailand
11.13. Vietnam

12. Europe, Middle East & Africa 3D Secure Payment Authentication Market

12.1. Introduction
12.2. Denmark
12.3. Egypt
12.4. Finland
12.5. France
12.6. Germany
12.7. Israel
12.8. Italy
12.9. Netherlands
12.10. Nigeria
12.11. Norway
12.12. Poland
12.13. Qatar
12.14. Russia
12.15. Saudi Arabia
12.16. South Africa
12.17. Spain
12.18. Sweden
12.19. Switzerland
12.20. Turkey
12.21. United Arab Emirates
12.22. United Kingdom

13. Competitive Landscape

13.1. Market Share Analysis, 2023
13.2. FPNV Positioning Matrix, 2023
13.3. Competitive Scenario Analysis
- 13.3.1. Entersekt Acquires Modirum 3-D Secure Payment Solutions to Accelerate Global Expansion
- 13.3.2. Plata Partners with Entersekt to Protect its Credit Card with 3-D Secure Payment Authentication
- 13.3.3. PayU launches 3DS 2.0 SDK authentication service for Indian merchants
13.4. Strategy Analysis & Recommendation

14. Competitive Portfolio

14.1. Key Company Profiles
14.2. Key Product Portfolio