PSD2 & Open Banking Biometric Authentication Market by Function, End Users

Description

List of Tables

The PSD2 & Open Banking Biometric Authentication Market was valued at USD 5.64 billion in 2023, expected to reach USD 6.21 billion in 2024, and is projected to grow at a CAGR of 10.27%, to USD 11.18 billion by 2030.

The rise of PSD2 and open banking initiatives has significantly broadened the scope of biometric authentication, defining a landscape where financial institutions must secure transactions with heightened customer authentication measures. Biometric authentication, including fingerprints, facial recognition, and voice recognition, ensures security and ease of use, catering to the increasing demand for robust authentication that balances customer experience with security. The necessity arises from a need to prevent fraud while reducing friction in the customer journey, facilitating seamless banking experiences and expanding digital finance services. This approach finds application across various end-users such as banks, fintech companies, and consumers engaging in online transactions. Key growth factors influencing the market include regulatory mandates like PSD2, advances in biometric technology, and consumers' growing trust in mobile banking. Potential opportunities lie in establishing partnerships between tech companies and financial entities to enhance technology deployment and customer engagement. To leverage these opportunities, organizations should focus on developing scalable, secure, and user-friendly biometric solutions. Challenges, however, include privacy concerns, data storage issues, and the potential for biometric data breaches, which require robust cybersecurity frameworks and transparent data management policies. Additionally, the high initial costs of implementation may deter smaller firms. Innovation areas with significant potential include AI-driven biometric solutions, which can enhance accuracy and efficiency, and the integration of multi-modal biometrics to strengthen security protocols and user verification processes. The market is dynamic and characterized by rapid technological advancements and evolving regulatory environments, pushing firms to continuously innovate and adapt. Companies must remain vigilant to these changes and invest in research and development to stay ahead. Emphasizing data protection, customer education, and regulatory compliance can further foster growth and build consumer trust in biometric authentication under PSD2 and open banking frameworks.

KEY MARKET STATISTICS
Base Year [2023]	USD 5.64 billion
Estimated Year [2024]	USD 6.21 billion
Forecast Year [2030]	USD 11.18 billion
CAGR (%)	10.27%

Market Dynamics: Unveiling Key Market Insights in the Rapidly Evolving PSD2 & Open Banking Biometric Authentication Market

The PSD2 & Open Banking Biometric Authentication Market is undergoing transformative changes driven by a dynamic interplay of supply and demand factors. Understanding these evolving market dynamics prepares business organizations to make informed investment decisions, refine strategic decisions, and seize new opportunities. By gaining a comprehensive view of these trends, business organizations can mitigate various risks across political, geographic, technical, social, and economic domains while also gaining a clearer understanding of consumer behavior and its impact on manufacturing costs and purchasing trends.

Market Drivers
- Increasing Number of Users with Mobile Banking Application
- Rising Importance of Application Program Interfaces (APIs) in Different Financial Sectors
- High-Security Risk in Financial Transactions and Need For Multi-Factor Authentication in Payment Systems
Market Restraints
- High Cost for Security Solution and Potential False Positives & Inaccuracy
Market Opportunities
- Major Shift of Financial Institutions Toward the Online Business and Improving Financial Services with Customer-Centric Regulation
- Favorable Ecosystem for Tech-Startups to Develop Biometric Authentication
Market Challenges
- Complexities in Minimizing Demographic Bias in Biometrics

Porter's Five Forces: A Strategic Tool for Navigating the PSD2 & Open Banking Biometric Authentication Market

Porter's five forces framework is a critical tool for understanding the competitive landscape of the PSD2 & Open Banking Biometric Authentication Market. It offers business organizations with a clear methodology for evaluating their competitive positioning and exploring strategic opportunities. This framework helps businesses assess the power dynamics within the market and determine the profitability of new ventures. With these insights, business organizations can leverage their strengths, address weaknesses, and avoid potential challenges, ensuring a more resilient market positioning.

PESTLE Analysis: Navigating External Influences in the PSD2 & Open Banking Biometric Authentication Market

External macro-environmental factors play a pivotal role in shaping the performance dynamics of the PSD2 & Open Banking Biometric Authentication Market. Political, Economic, Social, Technological, Legal, and Environmental factors analysis provides the necessary information to navigate these influences. By examining PESTLE factors, businesses can better understand potential risks and opportunities. This analysis enables business organizations to anticipate changes in regulations, consumer preferences, and economic trends, ensuring they are prepared to make proactive, forward-thinking decisions.

Market Share Analysis: Understanding the Competitive Landscape in the PSD2 & Open Banking Biometric Authentication Market

A detailed market share analysis in the PSD2 & Open Banking Biometric Authentication Market provides a comprehensive assessment of vendors' performance. Companies can identify their competitive positioning by comparing key metrics, including revenue, customer base, and growth rates. This analysis highlights market concentration, fragmentation, and trends in consolidation, offering vendors the insights required to make strategic decisions that enhance their position in an increasingly competitive landscape.

FPNV Positioning Matrix: Evaluating Vendors' Performance in the PSD2 & Open Banking Biometric Authentication Market

The Forefront, Pathfinder, Niche, Vital (FPNV) Positioning Matrix is a critical tool for evaluating vendors within the PSD2 & Open Banking Biometric Authentication Market. This matrix enables business organizations to make well-informed decisions that align with their goals by assessing vendors based on their business strategy and product satisfaction. The four quadrants provide a clear and precise segmentation of vendors, helping users identify the right partners and solutions that best fit their strategic objectives.

Key Company Profiles

The report delves into recent significant developments in the PSD2 & Open Banking Biometric Authentication Market, highlighting leading vendors and their innovative profiles. These include Plaid Financial Ltd., Incode Technologies Inc., Tell Money Limited, iProov Limited, Mollie B.V., Okta, Inc., Accenture PLC, Banfico Ltd, INFOSISTEMA, SISTEMAS DE INFORMACAO, S.A. by JYON Group, Salt Edge Inc., Temenos Headquarters SA, Google LLC by Alphabet Inc., National Westminster Bank plc, Nok Nok Labs, Inc., ClearBank Ltd., Capgemini SE, Fujitsu Limited, TAS S.p.A., LexisNexis Risk Solutions Inc. by RELX Group PLC, Apple Inc., Moneyhub Financial Technology Ltd, Thales Group, Avanade Inc., Tata Consultancy Services Limited, Mastercard International Incorporated, Metro Bank PLC, CardinalCommerce Corporation, InfoCert S.p.A., and Enfuce Financial Services Ltd..

Market Segmentation & Coverage

This research report categorizes the PSD2 & Open Banking Biometric Authentication Market to forecast the revenues and analyze trends in each of the following sub-markets:

Based on Function, market is studied across Authentication & Authorization, Content Based Attacks Detection, Data Encryption, Identity Tracking, Message Validation, and Traffic Management.
Based on End Users, market is studied across Banks, Customers, Marchants, and Payment Service Provider.
Based on Region, market is studied across Americas, Asia-Pacific, and Europe, Middle East & Africa. The Americas is further studied across Argentina, Brazil, Canada, Mexico, and United States. The United States is further studied across California, Florida, Illinois, New York, Ohio, Pennsylvania, and Texas. The Asia-Pacific is further studied across Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam. The Europe, Middle East & Africa is further studied across Denmark, Egypt, Finland, France, Germany, Israel, Italy, Netherlands, Nigeria, Norway, Poland, Qatar, Russia, Saudi Arabia, South Africa, Spain, Sweden, Switzerland, Turkey, United Arab Emirates, and United Kingdom.

The report offers a comprehensive analysis of the market, covering key focus areas:

1. Market Penetration: A detailed review of the current market environment, including extensive data from top industry players, evaluating their market reach and overall influence.

2. Market Development: Identifies growth opportunities in emerging markets and assesses expansion potential in established sectors, providing a strategic roadmap for future growth.

3. Market Diversification: Analyzes recent product launches, untapped geographic regions, major industry advancements, and strategic investments reshaping the market.

4. Competitive Assessment & Intelligence: Provides a thorough analysis of the competitive landscape, examining market share, business strategies, product portfolios, certifications, regulatory approvals, patent trends, and technological advancements of key players.

5. Product Development & Innovation: Highlights cutting-edge technologies, R&D activities, and product innovations expected to drive future market growth.

The report also answers critical questions to aid stakeholders in making informed decisions:

1. What is the current market size, and what is the forecasted growth?

2. Which products, segments, and regions offer the best investment opportunities?

3. What are the key technology trends and regulatory influences shaping the market?

4. How do leading vendors rank in terms of market share and competitive positioning?

5. What revenue sources and strategic opportunities drive vendors' market entry or exit strategies?

Product Code: MRR-437896AA398A

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. Increasing Number of Users with Mobile Banking Application
  - 5.1.1.2. Rising Importance of Application Program Interfaces (APIs) in Different Financial Sectors
  - 5.1.1.3. High-Security Risk in Financial Transactions and Need For Multi-Factor Authentication in Payment Systems
- 5.1.2. Restraints
  - 5.1.2.1. High Cost for Security Solution and Potential False Positives & Inaccuracy
- 5.1.3. Opportunities
  - 5.1.3.1. Major Shift of Financial Institutions Toward the Online Business and Improving Financial Services with Customer-Centric Regulation
  - 5.1.3.2. Favorable Ecosystem for Tech-Startups to Develop Biometric Authentication
- 5.1.4. Challenges
  - 5.1.4.1. Complexities in Minimizing Demographic Bias in Biometrics
5.2. Market Segmentation Analysis
- 5.2.1. Function: Growing significance of real-time identity and access management systems
- 5.2.2. End Users: Higher deployment of PSD2 and open banking biometric authentication solutions by merchants for reducing friction in payment processes
5.3. Porter's Five Forces Analysis
- 5.3.1. Threat of New Entrants
- 5.3.2. Threat of Substitutes
- 5.3.3. Bargaining Power of Customers
- 5.3.4. Bargaining Power of Suppliers
- 5.3.5. Industry Rivalry
5.4. PESTLE Analysis
- 5.4.1. Political
- 5.4.2. Economic
- 5.4.3. Social
- 5.4.4. Technological
- 5.4.5. Legal
- 5.4.6. Environmental
5.5. Client Customization

6. PSD2 & Open Banking Biometric Authentication Market, by Function

6.1. Introduction
6.2. Authentication & Authorization
6.3. Content Based Attacks Detection
6.4. Data Encryption
6.5. Identity Tracking
6.6. Message Validation
6.7. Traffic Management

7. PSD2 & Open Banking Biometric Authentication Market, by End Users

7.1. Introduction
7.2. Banks
7.3. Customers
7.4. Marchants
7.5. Payment Service Provider

8. Americas PSD2 & Open Banking Biometric Authentication Market

8.1. Introduction
8.2. Argentina
8.3. Brazil
8.4. Canada
8.5. Mexico
8.6. United States

9. Asia-Pacific PSD2 & Open Banking Biometric Authentication Market

9.1. Introduction
9.2. Australia
9.3. China
9.4. India
9.5. Indonesia
9.6. Japan
9.7. Malaysia
9.8. Philippines
9.9. Singapore
9.10. South Korea
9.11. Taiwan
9.12. Thailand
9.13. Vietnam

10. Europe, Middle East & Africa PSD2 & Open Banking Biometric Authentication Market

10.1. Introduction
10.2. Denmark
10.3. Egypt
10.4. Finland
10.5. France
10.6. Germany
10.7. Israel
10.8. Italy
10.9. Netherlands
10.10. Nigeria
10.11. Norway
10.12. Poland
10.13. Qatar
10.14. Russia
10.15. Saudi Arabia
10.16. South Africa
10.17. Spain
10.18. Sweden
10.19. Switzerland
10.20. Turkey
10.21. United Arab Emirates
10.22. United Kingdom

11. Competitive Landscape

11.1. Market Share Analysis, 2023
11.2. FPNV Positioning Matrix, 2023
11.3. Competitive Scenario Analysis
- 11.3.1. Tell Money Limited Partners with Moorwand for PSD2 Compliance
- 11.3.2. Banfico and InfoCert Announce Exclusive Partnership to Offer Open Banking / PSD2 Certificates from Banfico's OB Directory
- 11.3.3. Shanghai Commercial Bank Taps Salt Edge for PSD2 Compliance Solution

Companies Mentioned

1. Plaid Financial Ltd.
2. Incode Technologies Inc.
3. Tell Money Limited
4. iProov Limited
5. Mollie B.V.
6. Okta, Inc.
7. Accenture PLC
8. Banfico Ltd
9. INFOSISTEMA, SISTEMAS DE INFORMACAO, S.A. by JYON Group
10. Salt Edge Inc.
11. Temenos Headquarters SA
12. Google LLC by Alphabet Inc.
13. National Westminster Bank plc
14. Nok Nok Labs, Inc.
15. ClearBank Ltd.
16. Capgemini SE
17. Fujitsu Limited
18. TAS S.p.A.
19. LexisNexis Risk Solutions Inc. by RELX Group PLC
20. Apple Inc.
21. Moneyhub Financial Technology Ltd
22. Thales Group
23. Avanade Inc.
24. Tata Consultancy Services Limited
25. Mastercard International Incorporated
26. Metro Bank PLC
27. CardinalCommerce Corporation
28. InfoCert S.p.A.
29. Enfuce Financial Services Ltd.