3D Secure Payment Authentication Market Research Report: By Authentication Type (3D Secure 2.0, 3D Secure 1.0), By Payment Interface (Browser-Based, Native-App-Based, Device-Based), By End-Use Industry (E-commerce, Travel and Hospitality, Financial Services, Telecommunications, Healthcare), By Enterprise Size (Small and Medium-Sized Enterprises (SMEs), Large Enterprises) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

3D Secure Payment Authentication Market Overview

As per MRFR analysis, the 3D Secure Payment Authentication Market Size was estimated at 5.78 (USD Billion) in 2022. The 3D Secure Payment Authentication Market Industry is expected to grow from 6.58 (USD Billion) in 2023 to 21.4 (USD Billion) by 2032. The 3D Secure Payment Authentication Market CAGR (growth rate) is expected to be around 13.99% during the forecast period (2024 - 2032).

Key 3D Secure Payment Authentication Market Trends Highlighted

The 3D Secure Payment Authentication Market is estimated to grow in the upcoming years owing to an increase in e-commerce and the implementation of secure measures during online transactions. The rising incidence of online fraud is one among other market opportunities. Mobile Payments are increasing, and regulations have continued to be developed for example, PS2 Nd PS free registration.

Areas of development include continued growth in the e-commerce market, the introduction of new technologies for authentication like biometrics and behavioral analytics, and more comprehensive use of 3D Secure in conjunction with payment methods. Recent developments point to a movement towards the use of identity that does not contravene the said security practices while at the same time achieving the intended courtesy: the use of risk-based levels of allied security that are adjustable with the flow of events outlining the entire authentication procedure. Additionally, the growing use of artificial intelligence and machine learning is likely to improve the patterns related to fraud detection and prevention.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

3D Secure Payment Authentication Market Drivers

Accelerating E-commerce Growth

The Expansion and Advancement of E-commerce: The increasing adoption and growing acceptance of the e-commerce sector has emerged as one of the primary drivers and real catalysts for the 3D Secure Payment Authentication Market Industry. The rise of online shopping means that there is a huge increase in the demand for payment methods which can ensure the security of the prospects. As such, the 3D secure payment methods are currently gaining more acceptance and, thereby, more prominence.

The fact that these secure payment methods can also function as a card, not a present method, also leads them to receive a higher level of preference from both the merchants and the consumers. The demand for innovative and secured payment processing systems can mainly be traced to the increasing popularity of mobile commerce.

Heightened Security Concerns

The 3D Secure Payment Authentication Market Industry is also driven by escalating security concerns and rising incidences of online fraud. In current times, as the offenders are exploiting the payment methods with the freshest strategies or technologies to crack the systems, customers and ventures both have come up with the need for additional security levels. The 3D Secure comes with robust authentication means and ensures an extra layer of safety while one is carrying out an online transaction.

Its implementation within the ventures by the merchants gains a higher preference to protect the payment information of their buyers and adhere to the regulations set by the industry, thereby driving market growth.

Government Regulations and Industry Standards

The 3D secure payment authentication market industry is shaped to a large extent by government regulations and industry standards. For instance, stringent data protection laws and regulations, such as the Payment Card Industry Data Security Standard, mean that businesses are required to implement stringent security measures to protect credit card data. In doing so, such legal measures, standards and regulations ensure that 3D Secure payments present a compliant and secure payment method.

Additionally, at the industry level, for instance, the EMV 3-D Secure seeks to promote a common 3D security across all the payment networks. By so doing, such a data protection legal measure and industry-standard promote the growth and adoption of 3D Secure payment.

3D Secure Payment Authentication Market Segment Insights

3D Secure Payment Authentication Market Authentication Type Insights

The 3D Secure Payment Authentication Market segmentation by Authentication Type includes 3D Secure 2.0 and 3D Secure 1.0. In 2023, the 3D Secure 2.0 segment held a larger market share, and it is expected to continue its dominance during the forecast period. 3D Secure 2.0 is a newer and more advanced protocol that provides a more secure and frictionless authentication experience for online shoppers. It uses a risk-based approach to authentication, which means that it only requires additional authentication if there is a higher risk of fraud.

This makes it more convenient for shoppers while still providing a high level of security. The 3D Secure 1.0 segment is expected to experience a decline in market share during the forecast period. This is due to the fact that 3D Secure 2.0 is a more advanced and secure protocol. The rising adoption of e-commerce and the increasing number of online transactions are driving the growth of the market. Additionally, the growing awareness of online fraud and the need for secure payment authentication solutions are also contributing to the market growth.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

3D Secure Payment Authentication Market Payment Interface Insights

“3D Secure Payment Authentication Market is segmented on the basis of Payment Interface, which consists of Browser-Based, Native-App-Based, and Device-Based. The browser-based segment led the market in the year 2023, contributing to over 55% share of the 3D Secure Payment Authentication Market revenue. The Native-App-Based segment is anticipated to exhibit the highest CAGR over the forecast period, mainly because of the extensive adoption of mobile banking and mobile payment applications. The Device-Based segment is expected to hold a considerable market share in the years to come due to the burgeoning number of wearables and, subsequently, the growing prominence of the Internet of Things on the market.

3D Secure Payment Authentication Market is estimated to reach USD 8.53 billion by 2024, expanding at the CAGR of 14.3% from 2023 to 2032.”

3D Secure Payment Authentication Market End-Use Industry Insights

The End-Use Industry segment plays a crucial role in shaping the 3D Secure Payment Authentication Market landscape. E-commerce dominates the market, accounting for over 40% of the revenue in 2023. Its continued growth is driven by the increasing adoption of online shopping and the need for secure payment gateways. The Travel and Hospitality sector is another significant contributor, with a market share of approximately 25%. The rising number of online travel bookings and the growing popularity of digital wallets are propelling this segment's growth.

Financial Services hold a substantial market share, driven by the increasing use of online banking and the need for robust fraud prevention measures. Telecommunications and Healthcare are also notable segments, with growing demand for secure payment solutions in these industries.

3D Secure Payment Authentication Market Enterprise Size Insights

The 3D Secure Payment Authentication Market is segmented by enterprise size into Small and Medium-Sized Enterprises (SMEs) and Large Enterprises. The Large Enterprises segment held the largest market share in 2023 and is expected to continue to dominate the market throughout the forecast period. This is primarily due to the increasing adoption of 3D Secure Payment Authentication solutions by large enterprises to protect themselves from online fraud and data breaches. SMEs are also increasingly adopting 3D Secure Payment Authentication solutions to improve their security posture and comply with industry regulations.

The increasing adoption of e-commerce and the growing number of online transactions are driving the growth of the 3D Secure Payment Authentication Market.

3D Secure Payment Authentication Market Regional Insights

The 3D Secure Payment Authentication Market is segmented by region into North America, Europe, APAC, South America, and MEA. Among these regions, North America is expected to hold the largest market share in 2023 and is projected to continue its dominance throughout the forecast period. The growth in this region can be attributed to the early adoption of 3D Secure technology by major payment networks and merchants, as well as the increasing prevalence of e-commerce. Europe is expected to be the second-largest market for 3D Secure payment authentication, followed by APAC.

The APAC region is expected to witness significant growth in the coming years due to the rising number of internet users and the increasing adoption of e-commerce in countries such as India and China. South America and MEA are expected to have a relatively smaller market share, but they are also expected to witness steady growth in the coming years.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

3D Secure Payment Authentication Market Key Players And Competitive Insights:

Major players in the 3D Secure Payment Authentication Market are constantly innovating and developing new technologies to stay ahead of the competition. This has led to a number of advancements in the industry, such as the development of new authentication methods, fraud detection tools, and risk management solutions. Leading 3D Secure Payment Authentication Market players are also investing in research and development to improve their products and services.

This 3D Secure Payment Authentication Market development is expected to continue in the coming years as the market continues to grow and evolve. The competitive landscape of the 3D Secure Payment Authentication Market industry is characterized by the presence of a number of large, well-established players, as well as a number of smaller, niche players. The major players in the market include Visa, Mastercard, American Express, Discover, and JCB. These companies have a strong presence in the market and offer a wide range of 3D Secure Payment Authentication solutions. Smaller niche players in the market include companies such as Trusteer, ThreatMetrix, and Riskified.

These companies offer specialized 3D Secure Payment Authentication solutions that target specific market segments. The 3D Secure Payment Authentication Market is expected to grow significantly in the coming years, driven by the increasing adoption of online payments and the growing threat of online fraud.

One of the leading companies in the 3D Secure Payment Authentication Market is Visa. Visa is a payments technology company that provides a range of payment solutions to consumers, businesses, and governments. Visa's 3D Secure Payment Authentication solution, Visa Secure, is one of the most widely used 3D Secure solutions in the world. Visa Secure uses a variety of authentication methods, including one-time passwords, biometrics, and device fingerprinting, to protect online payments from fraud. Visa is constantly innovating and developing new technologies to improve Visa Secure. In 2023, Visa announced the launch of Visa Secure+, a new version of Visa Secure that uses artificial intelligence and machine learning to detect and prevent fraud.

A competitor of Visa in the 3D Secure Payment Authentication Market is Mastercard. Mastercard is a payments technology company that provides a range of payment solutions to consumers, businesses, and governments. Mastercard's 3D Secure Payment Authentication solution, Mastercard Identity Check, is one of the most widely used 3D Secure solutions in the world. Mastercard Identity Check uses a variety of authentication methods, including one-time passwords, biometrics, and device fingerprinting, to protect online payments from fraud. Mastercard is constantly innovating and developing new technologies to improve Mastercard Identity Check. In 2023, Mastercard announced the launch of Mastercard Identity Check+, a new version of Mastercard Identity Check that uses artificial intelligence and machine learning to detect and prevent fraud.

Key Companies in the 3D Secure Payment Authentication Market Include:

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  CA Technologies

  
  


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  NuData Security

  
  


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  DeviceLock

  
  


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  F5 Networks

  
  


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  RSA Security

  
  


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  Authenteq

  
  


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  Verifi

  
  


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  Microsoft

  
  


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  IBM

  
  


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  Ethoca

  
  


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  Arcot Systems

  
  


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  SecureAuth

  
  


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  Trustev

  
  


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  ThreatMetrix

  
  


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  CyberSource

  
  

3D Secure Payment Authentication Market Industry Developments

The 3D Secure Payment Authentication Market is projected to grow from USD 6.58 billion in 2023 to USD 21.4 billion by 2032, at a CAGR of 13.99% during the forecast period. APAC is expected to be the fastest-growing region, owing to the increasing adoption of e-commerce and the rising number of online transactions. The market is driven by factors such as the increasing need for secure online payments, the growing adoption of e-commerce, and the rising number of online frauds. Key players in the market include Mastercard, Visa, and PayPal.

Recent news developments and current affairs in the market include:

Mastercard announced the launch of a new 3D Secure solution that uses biometrics to authenticate online transactions.
Visa announced the launch of a new 3D Secure solution that uses artificial intelligence to detect and prevent fraud.
PayPal announced the launch of a new 3D Secure solution that uses machine learning to authenticate online transactions.

3D Secure Payment Authentication Market Segmentation Insights

1. 
   

   3D Secure Payment Authentication Market Authentication Type Outlook

   
   
   
   
   1. 
      

      3D Secure 2.0

      
      
   
   
   2. 
      

      3D Secure 1.0

      
      
   
   
   
   

2. 
   

   3D Secure Payment Authentication Market Payment Interface Outlook

   
   
   
   
   1. 
      

      Browser-Based

      
      
   
   
   2. 
      

      Native-App-Based

      
      
   
   
   3. 
      

      Device-Based

      
      
   
   
   
   

3. 
   

   3D Secure Payment Authentication Market End-Use Industry Outlook

   
   
   
   
   1. 
      

      E-commerce

      
      
   
   
   2. 
      

      Travel and Hospitality

      
      
   
   
   3. 
      

      Financial Services

      
      
   
   
   4. 
      

      Telecommunications

      
      
   
   
   5. 
      

      Healthcare

      
      
   
   
   
   

4. 
   

   3D Secure Payment Authentication Market Enterprise Size Outlook

   
   
   
   
   1. 
      

      Small and Medium-Sized Enterprises (SMEs)

      
      
   
   
   2. 
      

      Large Enterprises

      
      
   
   
   
   

5. 
   

   3D Secure Payment Authentication Market Regional Outlook

   
   
   
   
   1. 
      

      North America

      
      
   
   
   2. 
      

      Europe

      
      
   
   
   3. 
      

      South America

      
      
   
   
   4. 
      

      Asia Pacific

      
      
   
   
   5. 
      

      Middle East and Africa