3D Secure Payment Market Report 2025

The 3D secure payment market size has grown rapidly in recent years. It will grow from $1.42 billion in 2024 to $1.61 billion in 2025 at a compound annual growth rate (CAGR) of 13.1%. The growth in the historic period can be attributed to increasing e-commerce transactions, growing cybersecurity concerns, rise in mobile commerce, increased payment card usage, shift to digital payments.

The 3D secure payment market size is expected to see rapid growth in the next few years. It will grow to $2.74 billion in 2029 at a compound annual growth rate (CAGR) of 14.2%. The growth in the forecast period can be attributed to rise in mobile wallet usage, increased cross-border transactions, adoption by new industry verticals, data security demands, ongoing cybersecurity threats. Major trends in the forecast period include real-time transaction monitoring, strong customer authentication (SCA) compliance, tokenization for secure payments, multi-channel authentication, and authentication innovation beyond passwords.

The growth of the 3D secure payment market is anticipated to be propelled by the evolving consumer inclinations towards online shopping. Online shopping denotes a form of electronic commerce wherein customers utilize web browsers to explore various products and services before making purchases. Factors such as enhanced access to information, comparative analysis of items and prices, a broader spectrum of product choices, convenience, and the ease of finding desired items swiftly contribute to the burgeoning preference for online shopping. Within this sphere, 3D Secure payment stands as an additional layer of authentication for cardholders, ensuring heightened security for online transactions. For instance, as per Tidio Ltd. in November 2022, the US digital buyer base is projected to surge to 285 million by 2025, compared to 268 million in 2022. Thus, the escalating consumer preference for online shopping acts as a significant driver for the growth of the 3D secure payment market.

The growing concern over cyber security is anticipated to drive the expansion of the 3D secure payment market in the future. Cyber security involves protecting computers, servers, mobile devices, electronic systems, networks, and data from malicious attacks. The increasing threat of cyber-attacks and cyber-crime in online payments is fueling the demand for enhanced technological advancements and the development of innovative security solutions, such as 3D secure payment. For instance, in April 2024, the UK-based Department for Science, Innovation, and Technology reported that 22% of businesses and 14% of charities experienced cyber crime in the past year. This percentage rises to 45% for medium-sized businesses, 58% for large businesses, and 37% for high-income charities. Furthermore, among the 50% of businesses and 32% of charities that reported any cyber security breaches or attacks, over two-fifths (44% of businesses and 42% of charities) ultimately fell victim to cyber crime. As a result, the growing concern over cyber security is driving the growth of the 3D secure payment market.

A prevalent trend shaping the landscape of the 3D Secure Payment market is centered around product innovation. Key market players are directing their efforts towards pioneering technologies and products such as 3-D Secure 2 (3DS2), frictionless authentication, 3D Secure 2 (3DS2), and biometric payment solutions to fortify their market positioning. For instance, in August 2022, Zuora Inc., a US-based enterprise software company, seamlessly integrated 3D Secure 2 (3DS2) into its operations. This updated version stands as a recommended solution for strong customer authentication (SCA) under the Payment Services Directive 2 (PSD2). With the integration of the iFrame of Payment Pages 2.0, the Stripe v2 gateway supports 3DS2, facilitating secure and accelerated digital payment transactions, particularly for mobile apps and interconnected devices, enhancing overall transaction security and efficiency.

Leading entities within the 3D secure payment market are directing their efforts towards introducing novel products aimed at enhancing the overall customer experience. For example, in February 2023, PayU, an India-based provider of online payment solutions, introduced a 3DS 2 SDK authentication service tailored for Indian merchants. This innovative 3DS 2 SDK solution substantially reduces checkout time by 40%, expediting payment processing while concurrently enhancing security measures against fraud. It grants retailers the ability to meet the 3DS 2 mandate through a streamlined integration process, offering them greater control over the user experience. Additionally, it ensures extensive coverage across various banks and card networks, while also leveraging seamless biometric capabilities to facilitate frictionless transactions.

In November 2022, Bluefin Payment Systems LLC, a US-based company specializing in payment and data security solutions, executed the acquisition of TECS Payment Systems for an undisclosed sum. Through this strategic acquisition, Bluefin intends to augment its service portfolio by integrating omnichannel payment functionalities and smart Point-of-Sale (POS) capabilities into its existing suite of payment and data security solutions. TECS Payment Systems, also based in the USA, is recognized for its provision of omnichannel payment solutions, notably including offerings related to 3D secure payments.

Major companies operating in the 3D secure payment market include GPayments Pty Ltd., Broadcom Inc., Mastercard Inc., Visa Inc., Bluefin Payment Systems LLC, American Express Company, RSA Security LLC, DECTA Limited, Modirum Oy, Marqeta, Entersekt, SIA S.p.A., Worldline SA, Elavon Inc., Adyen, AsiaPay, GMO Payment Gateway, Joseph Cyril Bamford Excavators Ltd., Fiserv Inc., ACI Worldwide Inc., PayPal Holdings Inc., Stripe Inc., CardinalCommerce Corporation, CyberSource Corporation, Forter Inc., Global Payments Inc., Ingenico Group, PayU, Rapyd Financial Network Ltd., Signifyd Inc., Skrill Limited, Worldpay Inc., Zoho Corporation.

North America was the largest region in the 3D secure payment market in 2024. Asia-Pacific is expected to be the fastest-growing region in the 3D secure payment market report during the forecast period. The regions covered in the 3d secure payment market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the 3d secure payment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

3D Secure payment is a security protocol that introduces an additional layer of protection for online credit card and debit card transactions. During the purchase process, customers are required to undergo an additional verification step with the card issuer to enhance security.

The primary categories of 3D secure payments are on-premise and cloud-based. Cloud-based solutions involve resources, services, or applications that are dynamically provided by cloud computing providers and accessed by clients over the Internet. These solutions comprise various components, including a merchant plug-in, an access control server, and other elements utilized in applications such as those used by banks, merchants, and payment gateways.

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The 3D secure payment market includes revenues earned by entities by providing services such as authentication, risk management, and liability shift. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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